Which of the Following Is Common to Both Tariffs and Quotas

question 131

Multiple Choice

Which of the following is common to both tariffs and quotas?

• A)Tariffs and quotas are both used as a means to increase government revenue.
• B)Tariffs and quotas both increase economic efficiency.
• C)Tariffs and quotas are both designed to reduce foreign competition faced by domestic firms.
• D)Tariffs and quotas are both examples of voluntary export restraints.

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Definitions:

Working Capital Management

involves the oversight and administration of a company's current assets and liabilities to ensure efficient operation and financial stability, including managing cash, inventories, and short-term debts.

Primary Market

The financial market where new securities are issued and sold for the first time.

Regulatory Dialectic

The pressures financial institutions and regulatory bodies exert on each other.

Market Value

The rate at which the market currently allows the buying or selling of a service or asset.