An Essential Difference in the Impact of Import Quotas as Opposed

question 9

Multiple Choice

An essential difference in the impact of import quotas as opposed to tariffs is that

• A)import quotas generate no revenue for the government,whereas tariffs do.
• B)tariffs result in price increases for the foreign goods affected,whereas quotas do not.
• C)import quotas result in lower sales of foreign goods,whereas tariffs do not.
• D)tariffs are protectionist,whereas import quotas are oriented toward free trade.
• E)tariffs result in greater profits than import quotas for the American industries protected.

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Definitions:

Goods Manufactured

Products that have been completed and are ready for sale during a specific accounting period.

GAAP Constraints

The limitations imposed by Generally Accepted Accounting Principles, guiding the boundaries for financial reporting and accounting practices.

Continuous Improvement

Continuous improvement is an ongoing effort to improve products, services, or processes through incremental and breakthrough improvements.

Total Quality Management

A management approach focused on continuous improvement of processes, products, and services by involving all employees in quality-related activities.