A Difference Between a Quota and a Tariff Is That

question 166

Multiple Choice

A difference between a quota and a tariff is that

• A) a tariff generates a higher price than a quota does.
• B) a tariff generates a greater reduction in exports.
• C) a quota increases profits of domestic producers more than a tariff does.
• D) the government collects revenues from a tariff, which does not happen with a quota.

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Definitions:

Unforeseen Circumstances

situations or events that were not predicted or expected and can significantly impact contracts or agreements.

Enforcing Contracts

The legal process of ensuring that parties to a contract fulfill their obligations as specified in the contract.

World Bank

An international financial institution that provides loans and grants to the governments of poor countries for the purpose of pursuing capital projects.

Accord and Satisfaction

A legal settlement where an agreement is made to satisfy a debt or claim, followed by the actual performance of this agreement, which discharges the original claim.