Compared to an Import Quota,an Equivalent Tariff May Provide a Less

question 22

Multiple Choice

Compared to an import quota,an equivalent tariff may provide a less certain amount of protection for home producers since:

• A) A tariff has no deadweight loss in terms of production and consumption
• B) Foreign firms may absorb the tariff by offering exports at lower prices
• C) Tariffs are effective only if home demand is perfectly elastic
• D) Quotas do not result in increases in the price of the imported good

---

Definitions:

Solicited Letter

A letter written in response to a request or invitation, often used in formal communications or applications.

Bridging Statement

A technique in communication used to smoothly transition from one topic to another, maintaining the flow and engagement of the audience.

Sentence Fragments

Groups of words that are punctuated as sentences but do not express a complete thought or idea.

Solicited Letters

Written communications requested by the recipient, often for specific information or action.