What Is the Difference Between a Tariff and a Trade

question 153

Multiple Choice

What is the difference between a tariff and a trade quota?

• A) A tariff is a tax on imported goods, and a trade quota is a quantity restriction on imported goods.
• B) A tariff is a cash payment to domestic exporters, and a trade quota restricts the quantity of domestically produced goods foreigners can buy.
• C) A tariff is a lump-sum tax on imported goods, and a trade quota is a sales tax on imported goods.
• D) A tariff is a quantity trade restriction on imported goods, and a trade quota is a quantity tax on imported goods.

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Definitions:

Sales

The transactions of selling goods or services.

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Histogram

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