If a Tariff and an Import Quota Lead to Equivalent

question 99

Multiple Choice

If a tariff and an import quota lead to equivalent increases in the domestic price of steel,then:

• A) The quota results in efficiency reductions but the tariff does not
• B) The tariff results in efficiency reductions but the quota does not
• C) They have identical impacts on how much is produced and consumed
• D) They have identical impacts on how income is distributed

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Definitions:

Military Expenditures

The financial resources a country allocates for its military to fund defense and security functions, including salaries, equipment, operations, and maintenance.

National Income Accountants

Professionals who compile and analyze data on a country's economic activity, measuring factors like GDP, national income, and investment.

Multiple Accounting

A method or system for keeping financial records that may involve tracking various financial transactions or accounts to ensure accuracy and completeness.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, stripping out the effects of inflation to reflect the real volume of goods and services produced.