The Main Purpose of Most Tariffs and Quotas Is to

question 8

Multiple Choice

The main purpose of most tariffs and quotas is to

• A)raise revenue for the government.
• B)reduce the prices consumers pay for goods and services.
• C)reduce the foreign competition that domestic firms face.
• D)improve the quality of goods and services imported into the country.

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Definitions:

IAS 28

An International Accounting Standard governing the accounting for investments in associates and joint ventures.

Equity Method

An accounting technique used to assess the investments in other companies where the investor has significant influence but not full control.

Patent

A form of intellectual property right that grants the patent holder exclusive rights to an invention for a certain time period, preventing others from making, using, selling, or distributing the patented invention without permission.

Significant Influence

A level of control in an investment, usually signifying the ability to participate in financial and operating policy decisions of the investee without having full control.