Asked by KG ajjahn hutchinson-baldwin on May 07, 2024
Verified
Other things equal, a tariff is
A) superior to an import quota for Americans because a tariff increases the profits of foreign producers.
B) inferior to an import quota for Americans because a tariff increases the profits of domestic producers.
C) superior to an import quota for Americans because a tariff generates revenue for the U.S. Treasury.
D) inferior to an import quota for Americans because a tariff generates revenue for the U.S. Treasury.
Tariff
A tax imposed by a government on imports or exports of goods and services.
Import Quota
A government-imposed limit on the amount or value of goods that can be imported into a country over a specified period of time, usually to protect domestic industries.
U.S. Treasury
The federal department responsible for managing government revenue, issuing currency, and executing fiscal policy in the United States.
- Understand the consequences of tariffs for domestic and overseas manufacturers and buyers.
Verified Answer
JR
Janet ReyesMay 08, 2024
Final Answer :
C
Explanation :
A tariff is considered superior to an import quota for Americans because it generates revenue for the U.S. Treasury through taxes collected on imported goods, whereas an import quota does not generate government revenue and typically benefits foreign or domestic producers depending on the specific circumstances.
Learning Objectives
- Understand the consequences of tariffs for domestic and overseas manufacturers and buyers.