A Difference Between a Quota and a Tariff Is That

question 121

Multiple Choice

A difference between a quota and a tariff is that

• A)a tariff generates a higher price than does an import quota.
• B)a tariff generates a greater reduction in exports than does an import quota.
• C)an import quota increases profits of domestic producers more than a tariff.
• D)the government collects revenue from a tariff but does not collect revenue from an import quota.
• E)an import quota generates a deadweight loss and a tariff does not.

---

Definitions:

Worker

An individual who performs tasks or labors for payment, contributing their skills and efforts to an organization or economy.

Soviet Version

Refers to the socialist economic model employed by the Soviet Union, characterized by state ownership and central planning.

Government Planning Committee

A body within the government responsible for setting goals, designing strategies, and overseeing the implementation of policies and plans.

Capital

Economic resources that are used by firms to produce goods or services, including buildings, machinery, and equipment.