A Tariff Is

question 52

Multiple Choice

A tariff is:

• A) a tax on an import.
• B) a physical limitation on the quantity of imports of a certain good.
• C) a health or safety requirement on imports.
• D) a regulation affecting imports.

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Definitions:

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good or service, including private and external costs.

Tradable Permits

Tradable permits are environmental policy instruments that allow companies or entities to buy or sell allowances to emit a certain amount of pollutants, aiming to reduce overall emissions efficiently.

Exclusive Licenses

Agreements granting one party alone the right to sell, produce, or use intellectual property or product.

Tradable Permits

Government-issued rights or allowances that permit the holder to emit a certain amount of a substance; can be bought, sold, or traded.