For a Country That Is Considering the Adoption of Either

question 61

Multiple Choice

For a country that is considering the adoption of either a tariff or an import quota on a particular good,an important difference is that

• A)an import quota has no effect on consumer surplus,while a tariff decreases consumer surplus.
• B)an import quota has no effect on producer surplus,while a tariff decreases producer surplus.
• C)a tariff raises total surplus,while an import quota does not.
• D)a tariff raises revenue for that country's government,while an import quota does not.

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Definitions:

Cost to Provide Services

The total expense incurred by a business to deliver a service, including labor, materials, and overhead costs.

Expected Cost

The anticipated or forecasted cost of an action, project, or product, taking into account all relevant factors and potential risks, used for budgeting and financial planning.

Small Facility

Refers to a building or area that is smaller in size, used for a specific purpose, such as manufacturing or storage.

Operating Costs

Expenses related to the day-to-day functioning of a business, excluding costs associated with production or acquisition of goods.