A Major Difference Between Tariffs and Import Quotas Is That

question 245

Multiple Choice

A major difference between tariffs and import quotas is that

• A)tariffs create deadweight losses,but import quotas do not.
• B)tariffs help domestic consumers,and import quotas help domestic producers.
• C)tariffs raise revenue for the government,but import quotas create surplus for those who get the licenses to import.
• D)All of the above are correct.

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Definitions:

Transfer Price

The price at which goods or services are sold between departments or subsidiaries within the same organization.

Transfer Price

The cost at which products and services are exchanged between departments within the same corporation.

Pool Products Division

Could represent a specific business segment within a company focused on producing or selling products related to swimming pools and related activities.

Transfer Price

The price at which goods and services are sold between divisions within the same company.