The Difference Between an Import Quota and a Tariff That

question 107

Multiple Choice

The difference between an import quota and a tariff that results in the same domestic price is

• A)none; they are the same
• B)the quantity demanded is higher under the tariff
• C)the world price is higher under the quota
• D)the tariff revenue goes to the domestic government; quota benefits may go to foreigners
• E)none because both quotas and tariffs are illegal

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Definitions:

Payment Of Dividends

The allocation of part of a corporation's profits to its shareholders, as decided by the corporation's board of directors.

Financing Activities

This term refers to transactions and events through which a business raises funds to operate and expand, such as issuing debt or selling equity.

Purchase Of Equipment

The acquisition of equipment that a business requires for its operations, treated as a capital expenditure.

Investing Activities

Transactions and events that involve the purchase and sale of long-term assets and other investments, not directly related to the entity's normal line of business.