A Tariff Is Better Than a Quota Because

question 196

Multiple Choice

A tariff is better than a quota because

• A)it does not distort trade as much.
• B)quotas are inflexible.
• C)tariffs produce tax revenue.
• D)quotas hurt domestic producers; tariffs hurt foreign producers.

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Definitions:

Technological Improvements

Advances in technology that enhance productivity, efficiency, or quality in goods and services.

Long Run

In economics, the Long Run is a period during which all factors of production and costs are variable, allowing for full industry adjustment to changes.

Per-worker Production Function

A mathematical representation showing how the amount of output produced per worker varies with the amount of capital or other inputs used per worker.

Quantity of Capital

The total assets, both physical (such as machinery and buildings) and financial, that individuals or businesses use to produce goods and services.