Scenario: Konesia Joins the World
Konesia, a former totalitarian economy and pariah state, is taking steps toward a free market economy. The government wants to encourage trade but also wants to find a balance so that local businesses and industries are not harmed.
-Konesia has created a hybrid form of trade restriction-a lower tariff rate for a certain quantity of imports and a higher rate for quantities that exceed the quota.This is an example of a(n)________.

Question

Quizplus · Accepted Answer

The scenario describes Konesia's use of a lower tariff rate for a certain quantity of imports and a higher rate for quantities that exceed the quota, which is a definition of a tariff-quota trade restriction. A compound tariff is a combination of a specific and ad valorem tariff, an export quota restricts the quantity of exports from a country, and an ad valorem tariff is a tax on imported goods based on their value. Therefore, the best choice is D) tariff-quota.