A Crucial Difference Between the Impact of an Import Quota

question 61

Multiple Choice

A crucial difference between the impact of an import quota compared to a tariff is that:

• A)​import quotas generate revenue to the domestic government, but tariffs do not.
• B)​import quotas generate no revenue to the domestic government, but tariffs do.
• C)​tariffs increase the prices paid by domestic consumers, but quotas do not.
• D)​both (a) and (c)

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Definitions:

Galvanic Skin Response

Galvanic skin response is a physiological reaction that causes the conductivity of the skin to change in response to emotional arousal, stress, or stimulation.

Physiological Component

The aspect of something, such as an emotion or response, that involves bodily functions and reactions.

Cognitive Component

The aspect of attitudes and beliefs that involves the mental processing of knowledge, information, and belief systems.

Physiological Component

Refers to the physical and biological aspects that contribute to an organism's functions and processes.