Q1. The primary benefits derived from tariffs usually accrue to:
A) domestic suppliers of goods protected by tariffs. B) foreign producers of goods protected by tariffs. C) domestic producers of export goods.
Q2. In what way does a tariff differ from a quota? A tariff is: A) not significantly different from a quota; tariffs are imposed by world organizations, whereas quotas are imposed by individual countries. B) a tax imposed by a foreign government, whereas a quota is a limit on the total amount of trade allowed. C) a tax imposed on imports, whereas a quota is a limit on the number of units of a good that can be imported.
Q3. What is the difference between a tariff and a quota? A) A tariff is a tax imposed on imports whereas a quota sets a limit on the amount of imports. B) A tariff is a tax imposed on imports whereas a quota is a target goal for exports. C) A quota is a tax imposed on imports whereas a tariff sets a limit on the amount of imports.
Q4. Who benefits least from tariffs? A) Domestic consumers. B) Foreign consumers. C) Domestic producers.
Q5. Who benefits the most from a quota? A) Foreign consumers. B) Domestic producers. C) Foreign producers.
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