A tariff-rate quota ?

Correct answer: D. is a two-tier tariff system intended to restrict imports?

  • A. is a limit on the number of tariffs that a country can place on imports?
  • B. uses a single tariff along with import quotas to restrict import
  • C. is designed to avoid the the price increases caused by simple tariffs
  • D. is a two-tier tariff system intended to restrict imports?

Explanation

A tariff-rate quota uses two tariff rates: a lower rate for imports within a specified quantity and a higher rate for imports beyond it. This makes it a two-tier tariff system rather than a single tariff combined with a separate quota.

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