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:

Observational Learning

Learning that occurs by watching and imitating the behaviors of others.

Mirror Neurons

Neurons that fire when an individual performs an action or when they observe someone else performing the same action, implicated in empathy and learning by imitation.

Cognitive Maps

Mental representations of physical spaces or environments, helping individuals navigate and understand spatial relationships.

Observational Learning

Learning that occurs through observing the behavior of others and the outcomes of those behaviors.