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:

Determined

Having a firm decision or being resolute in purpose.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension, often due to adverse or demanding circumstances.

Sources Of Conflict

The underlying reasons or causes that lead to disagreements or disputes between individuals or groups, often rooted in differences in values, beliefs, or interests.

Snacks

Small portions of food eaten between main meals.