In Comparing Tariffs and Quotas, We Know That

question 2

Multiple Choice

In comparing tariffs and quotas, we know that

• A) neither raises revenues for the federal government.
• B) both raise revenues for the federal government.
• C) tariffs raise revenues for the federal government, while quotas do not.
• D) quotas raise revenues for the federal government, while tariffs do not.

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Definitions:

Noncash Investing

Transactions involved in investing activities that do not involve immediate cash flow, such as exchanging one asset for another.

Financing Activity

Activities that result in changes in the size and composition of the equity capital and borrowings of the company.

Cash Flow Statements

Financial statements that record the cash inflows and outflows for a company over a specific period of time.

Noncash Investing

A type of investing activity that involves transactions not involving cash, such as property or stock trades.