Import Quotas and Tariffs Quiz

Import quota limits imports to specified levels with certainty, while the trade effect of an import tariff may be uncertain.  When elasticity of demand and supply are not known, it is difficult to estimate the import tariff required to restrict imports to desired level.  Foreign exporters cannot maintain export quantity simply adjust to barrier by increasing efficiency or accepting lower profits, as with tariff  Because ______ is less “visible, domestic producers prefer them over tariffs.