The Basic Difference Between a Tariff and Quota Is That

question 71

Multiple Choice

The basic difference between a tariff and quota is that:

• A)quota can be imposed both on imports and exports whereas a tariff can be imposed only on imports.
• B)quota yields revenue to the government whereas tariff does not yield any revenue.
• C)tariff reduces the import of the goods with greater certainty than quota as the amount of import restricted by quota depends on the price elasticity of demand for importable.
• D)tariff is a quantitative restriction on imports whereas quota is an import duty.
• E)a tariff raises the price of the product only in the domestic market whereas with a quota,both domestic and foreign producers receive a higher price.

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Definitions:

Litter

A collection of carelessly discarded waste materials often found in public places.

Random Assignment

A procedure in experimental designs that ensures each participant has an equal chance of being placed in any group, eliminating selection bias.

Experimental Condition

A situation created in scientific research where variables are manipulated to test their effects on an outcome.

Subjects

Individuals who participate in research studies or experiments and whose behavior or responses are analyzed.