The Primary Difference Between an Import Tariff and an Import

question 129

Multiple Choice

The primary difference between an import tariff and an import quota is that

• A)tariffs cause prices to rise, but quotas do not
• B)quotas cause prices to rise, but tariffs do not
• C)tariffs result in a net welfare loss, but quotas do not
• D)quotas result in a net welfare loss, but tariffs do not
• E)tariff revenues go to government, but quotas benefit those with the right to sell foreign goods domestically

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Definitions:

Debit Balance

A financial condition where the total debits in an account exceed the total credits, often indicating amounts owed.

Credit Balance

The amount residing in a financial account that indicates credit or the sum payable to a party, opposite of a debit balance.

Underapplied

Refers to the situation where the allocated manufacturing overhead cost is less than the actual manufacturing overhead cost incurred.

Overapplied

This term typically relates to overhead costs in manufacturing, where the allocated amount exceeds the actual incurred costs.