The Reason Tariffs and Quotas Are Imposed Is That

question 102

Multiple Choice

The reason tariffs and quotas are imposed is that

• A) their costs are spread among many people and their benefits are concentrated.
• B) their costs are concentrated and their benefits are spread among many people.
• C) they create net benefits in the long run.
• D) they reduce import dependence.

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Definitions:

Annual Percentage Rate

The yearly interest percentage rate that expresses the total cost of borrowing, including fees and charges.

Compounded

The process by which an investment grows over time as earnings are reinvested to generate additional earnings, known as compound interest.

Interest Payment

The amount paid by a borrower to a lender as compensation for the use of borrowed money, often expressed as a percentage of the principal.

Interest Rate

The lending charge, expressed as a fraction of the original amount, that a borrower is assessed by a lender for asset use.