The Primary Difference Between an Import Tariff and an Import

question 129

Multiple Choice

The primary difference between an import tariff and an import quota is that

• A)tariffs cause prices to rise, but quotas do not
• B)quotas cause prices to rise, but tariffs do not
• C)tariffs result in a net welfare loss, but quotas do not
• D)quotas result in a net welfare loss, but tariffs do not
• E)tariff revenues go to government, but quotas benefit those with the right to sell foreign goods domestically

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Definitions:

Drink Preferences

Individuals' specific likings for various types of beverages.

Expected Number

The predicted quantity or count in a statistical experiment or trial, based on probability distribution.

Test Statistic

A calculated value from sample data used to make decisions about a hypothesis in statistical tests.

Drink Preferences

Individuals' choices or tastes regarding various types of beverages.