If a Quota Is Set at the Same Quantity of Imports

question 90

Multiple Choice

If a quota is set at the same quantity of imports that results from a tariff,

• A)the deadweight loss from the tariff is greater than the deadweight loss from the import quota.
• B)the deadweight loss from the tariff equals the deadweight loss from the import quota.
• C)the deadweight loss from the import quota is greater than the deadweight loss from the tariff.
• D)the government tariff revenue is greater than the importers' profit from the import quota.
• E)the government tariff revenue is less than the importers' profit from the import quota.

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Definitions:

Assigned Benefits

The transfer of the right to receive benefits from a policy or agreement, such as insurance, from the original beneficiary to another party.

Equitable Remedy

The requirement that a party do something or refrain from doing something, beyond the payment of money.

Injunction

A court order preventing someone from performing a particular act.

Contract Law

The body of law that governs the formation, performance, and enforcement of contractual agreements between parties.