The Basic Difference Between a Tariff and Quota Is That

question 71

Multiple Choice

The basic difference between a tariff and quota is that:

• A)quota can be imposed both on imports and exports whereas a tariff can be imposed only on imports.
• B)quota yields revenue to the government whereas tariff does not yield any revenue.
• C)tariff reduces the import of the goods with greater certainty than quota as the amount of import restricted by quota depends on the price elasticity of demand for importable.
• D)tariff is a quantitative restriction on imports whereas quota is an import duty.
• E)a tariff raises the price of the product only in the domestic market whereas with a quota,both domestic and foreign producers receive a higher price.

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Definitions:

Chi-Square Test

A statistical test used to determine the significance of an observed association between two categorical variables.

Statistical Test

A method used to determine the significance or importance of data differences or relationships through mathematical calculations.

Independent Variables

Factors in an experiment that are intentionally varied to observe their impact on other variables, essentially the same as an independent variable but rephrased.

One-Way Analysis

Often refers to one-way analysis of variance (ANOVA), a statistical method used to compare the means of three or more samples using variances.