A Difference Between a Quota and a Tariff Is That

question 129

Multiple Choice

A difference between a quota and a tariff is that

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

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Definitions:

Product Life Cycle

A concept that describes the stages a product goes through from development to withdrawal from the market, including introduction, growth, maturity, and decline.

Innovative Product

A product that introduces new features, functionality, or improvements that distinctly set it apart from previous versions or competitors.

Positioning Statements

Key messages that are communicated to the target market to differentiate a brand or product in the market and influence consumer perceptions.

Target Market

A specific group of consumers identified as potential purchasers of a company's products or services, characterized by particular demographics or interests.