Which of the following is the best example of a quota?
A. a tax placed on all small cars sold in the domestic market
B. a limit imposed on the number of men's suits that can be imported from a foreign country
C. a subsidy from the U.S. government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits
D. a $100-per-car fee imposed on all small imported cars
Answer: B
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Which of the following parties benefits from an import quota but not from a tariff?
A) the foreign government B) the person with the right to import the good C) domestic producers D) domestic consumers E) the domestic government
The most progressive tax of the major taxes employed in the United States _____
a. are sales taxes b. are excise taxes c. are income taxes d. are property taxes