ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 3, Problem 4.14P
To determine
The difference between a tariff and a quota and determine the agents that benefit or get harmed from such restrictions on imports
Concept Introduction:
Tariff: A tariff is a tax imposed by the government on the imported goods and services to make it less competitive than the goods produced in the domestic markets.
Quota: A restriction on the quantity of goods and services imposed by the government that can be imported into the domestic markets is termed as a quota.
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