A Major Difference Between Tariffs and Import Quotas Is That

question 245

Multiple Choice

A major difference between tariffs and import quotas is that

• A)tariffs create deadweight losses,but import quotas do not.
• B)tariffs help domestic consumers,and import quotas help domestic producers.
• C)tariffs raise revenue for the government,but import quotas create surplus for those who get the licenses to import.
• D)All of the above are correct.

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Definitions:

Innovation

The process of creating, developing, and implementing new ideas, processes, or products that bring significant improvements or create value.

Flexibility

The quality of being adaptable or variable, able to change or be changed according to circumstances.

Conservative Realism

An approach or mindset that emphasizes pragmatism and practicality, often prioritizing traditional methods and realism over radical changes or idealism.

Creative Idealism

The belief in pursuing innovative and idealistic solutions that go beyond conventional thinking, driven by creativity and optimism.