The primary difference between an import tariff and an import quota is that
A) tariffs cause prices to rise, but quotas do not
B) quotas cause prices to rise, but tariffs do not
C) tariffs result in a net welfare loss, but quotas do not
D) quotas result in a net welfare loss, but tariffs do not
E) tariff revenues go to government, but quotas benefit those with the right to sell foreign goods domestically
Correct Answer:
Verified
Q120: Exhibit 19-6 Q121: The World Trade Organization (WTO) Q122: The international treaty established to negotiate lower Q123: International trade between countries typically produces a Q124: Regional trading bloc agreements Q126: Which of the following is not a Q127: The establishment of GATT resulted in Q128: A major U.S.motive for negotiating a free-trade Q129: A major U.S.motive for negotiating a free-trade Q130: The General Agreement on Tariffs and Trade![]()
A)became, in 1995,
A)are not considered trade
A)lower tariff
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