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What Is the Difference Between a Tariff and a Trade

Question 153

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What is the difference between a tariff and a trade quota?


A) A tariff is a tax on imported goods, and a trade quota is a quantity restriction on imported goods.
B) A tariff is a cash payment to domestic exporters, and a trade quota restricts the quantity of domestically produced goods foreigners can buy.
C) A tariff is a lump-sum tax on imported goods, and a trade quota is a sales tax on imported goods.
D) A tariff is a quantity trade restriction on imported goods, and a trade quota is a quantity tax on imported goods.

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