Which of the Following Statements About a Tariff and a Quota

question 67

Multiple Choice

Which of the following statements about a tariff and a quota is true?

• A)With a tariff the government collects revenues, but not with a quota.
• B)With a quota the quantity of imports falls, but not with a tariff.
• C)With a tariff the domestic price of the good increases, but not with a quota.
• D)With a quota the domestic production of the good increases, but not with a tariff.

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Definitions:

Implementation

The process of putting a decision or plan into effect; in a business context, it often refers to executing strategies or initiatives.

Negligence

Failure to exercise the care that a reasonably prudent person would exercise in like circumstances.

Damages

Compensation claimed by a person for loss or injury as a result of a breach of contract or tort.

Compensation

Payment or reward given to someone as a recompense for loss, injury, or suffering.