A Tariff Differs from a Quota in That a Tariff

question 80

Multiple Choice

A tariff differs from a quota in that a tariff is

• A) levied on imports, whereas a quota is imposed on exports.
• B) levied on exports, whereas a quota is imposed on imports.
• C) a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported.
• D) a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.

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Definitions:

Fixed And Variable Costs

Fixed costs remain unchanged regardless of the level of production or sales activity, while variable costs fluctuate with changes in activity.

Committed Fixed Costs

Long-term fixed costs that a business incurs from its commitments, such as leases or contracts, which are difficult to change in the short term.

Depreciation

Depreciation is the accounting method of allocating the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear over time.

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