In Comparing a Tariff and an Import Quota We Find

question 43

Multiple Choice

In comparing a tariff and an import quota we find that:

• A)the tariff and quota both generate the same amount of revenue for the federal government.
• B)the tariff generates revenue for the federal government but the quota does not.
• C)the quota generates revenue for the federal government but the tariff does not.
• D)neither the tariff nor the quota generates revenue for the federal government.

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Definitions:

Income Levels

The range of earnings of individuals or groups, reflecting economic status, which can influence buying power and standard of living.

Trade Restrictions

Measures such as tariffs, quotas, and embargoes that governments use to control the amount of trade across their borders.

Free Trade

Free trade is a policy of minimal restrictions on the international exchange of goods and services, allowing goods to move freely across borders.

Partially Valid

Refers to something being correct or effective only to a certain extent or in specific circumstances.