土豆妮

What is the difference between a tariff and a quota?

A) A tariff is a tax imposed on imports whereas a quota is a target goal for exports.

B) A quota is a tax imposed on imports whereas a tariff sets a limit on the amount of imports.

C) A tariff is a tax imposed on imports whereas a quota sets a limit on the amount of imports.

土豆妮

What is the difference between a tariff and a quota?

A) A tariff is a tax imposed on imports whereas a quota is a target goal for exports.

B) A quota is a tax imposed on imports whereas a tariff sets a limit on the amount of imports.

C) A tariff is a tax imposed on imports whereas a quota sets a limit on the amount of imports.

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Tariffs are taxes imposed on imports that benefit domestic producers because the higher import price due to the tax allows domestic producers to be more competitive in the local market. Governments also benefit because they collect the tax. Governments do not benefit from quotas because there is no tax involved just the supply of imports is reduced, which benefits domestic producers.

土豆妮

Who benefits least from tariffs?

A) Foreign consumers.

B) Domestic producers.

C) Domestic consumers.

土豆妮

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.

土豆妮

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.

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The difference between a tariff and a quota is that a tariff is a tax imposed on imported goods, while a quota is an import quantity limitation. Also, a tariff will generate tax revenue, but a quota does not.

土豆妮

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.

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Tariffs raise domestic prices, benefiting domestic suppliers.