Explain How an Import Quota Might Be More Inefficient Than

question 17

Essay

Explain how an import quota might be more inefficient than an import tariff that has the same impact on prices.

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Definitions:

Third-Party

An entity or individual not directly involved in a transaction or agreement but who may be affected by it or have an interest in it.

Honoring Checks

The act of accepting a check as payment and processing it as directed by the terms written on the check.

Drawer-Depositor

An individual or entity that has the authority to write and deposit checks within a banking relationship.

Overdraft

refers to a situation where an account balance goes below zero because more money has been withdrawn from the account than was available.