The Importers of a Good May Prefer a Quota Over

question 125

Multiple Choice

The importers of a good may prefer a quota over a tariff because

• A) a quota generates additional profits for importers.
• B) a tariff, but not a quota, generates additional profits for importers, not the government.
• C) the government gives subsidies to those who import from other countries.
• D) a quota may have more loopholes in its implementation than a tariff.

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Definitions:

Probability Density Function

A function that describes the likelihood of obtaining the possible values that a random variable can assume, used in continuous probability distributions.

Finite Population Correction Factor

A correction applied to standard errors or variances when sampling from a finite population without replacement, to account for the decreased variability.

Population Mean

The average of all the values in a population, calculated as the sum of all values divided by the number of values.

Sample Mean

The arithmetic average of a set of numerical values, calculated by adding them together and dividing by the number of observations.