Tariffs and Quotas Are Different in the Sense That

question 7

Multiple Choice

Tariffs and quotas are different in the sense that

• A)tariffs cause deadweight losses,while quotas do not cause deadweight losses.
• B)tariffs raise revenue for the government,while quotas do not raise revenue for the government.
• C)tariffs enhance the well-being of domestic consumers,while quotas diminish the well-being of domestic consumers.
• D)tariffs enhance the well-being of domestic producers,while quotas diminish the well-being of domestic producers.

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Definitions:

Wage Disparity

Wage disparity refers to the differences in wages earned by different groups of people, often influenced by factors such as gender, ethnicity, education, and job type.

Compensating Differentials

Wage differences across jobs that reflect the desirability of the job attributes, compensating workers for non-monetary aspects of different jobs like risk or undesirable hours.

Median Earnings

The middle value of earnings in a group, indicating that half of the group earns more and half earns less than this amount.

Private Businesses

Enterprises owned, operated, and managed by individual entrepreneurs, groups, or families, primarily for profit, without state control.