What Is a Major Difference Between a Tariff and a Quota

question 26

Multiple Choice

What is a major difference between a tariff and a quota?

• A)A tariff typically generates tax revenue while a quota does not.
• B)A tariff will reduce the ability of foreigners to obtain the purchasing power to buy a nation's export goods, but a quota will not affect the demand of foreigners for the nation's exports.
• C)A tariff will reduce imports but a quota generally will not.
• D)A tariff can easily be rescinded but a quota cannot.

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Definitions:

Capabilities

The skills, knowledge, tools, and other resources that an organization or individual possesses to perform a given task or achieve a specific goal.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Distribution Operations

Involves the management of the supply chain processes that ensure the efficient movement and storage of goods from the manufacturer to the end customer.

Materials Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, and disposal.