The Difference Between the Effect of an Import Quota When

question 161

Multiple Choice

The difference between the effect of an import quota when quota rights are given away and the effect of a tariff is that

• A)only the tariff results in a higher domestic price
• B)only the quota decreases the amount of goods imported
• C)the decrease in producer surplus is smaller with the quota
• D)under a quota, part of the decrease in consumer surplus is redistributed to foreign producers; under a tariff, it is redistributed to the domestic government
• E)under a tariff, part of the decrease in consumer surplus is redistributed to foreign producers; under a quota, it is redistributed to the domestic government

---

Definitions:

Logo

A logo is a symbol or small design adopted by an organization to identify its products, uniform, vehicles, etc., often embodying the company’s brand identity.

Unique Process

A distinctive method or series of actions aimed at achieving a particular result, often highlighting innovation or proprietary techniques.

Copyright Owner

The individual or entity that holds the exclusive legal rights to produce, publish, sell, or distribute an original work of authorship.

Further Distribution

The act of distributing a product, asset, or information beyond its initial delivery point, often involving subsequent chains of custody or markets.