Tariffs and Import Quotas Differ in That

question 4

Multiple Choice

Tariffs and import quotas differ in that

• A)one is a form of trade restriction,while the other is not.
• B)one is a tax,while the other is a limit.
• C)one is imposed by the government,while the other is imposed by the private sector.
• D)one is legal,while the other is not.
• E)one increases imports,while the other decreases imports.

---

Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Usury Laws

Legislation enacted to place a limit on the interest rate that can be charged on loans, intended to protect borrowers from excessively high rates.

Below-Market Interest Rate

An interest rate lower than the current market, usually subsidized by a government or institution.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, providing a measure of performance beyond accounting profit.