Under a tariff- rate quota ?
Correct answer: B. the over-quota tariff rate exceeds the with-quota tariff rate
- A. The within-quota tariff rate exceeds the over-quota tariff rate
- B. the over-quota tariff rate exceeds the with-quota tariff rate
- C. The within-quota tariff rate equals the over-quota tariff rate
- D. The within-quota tariff rate plus over-quota tariff rate equal 100 percent
Explanation
A tariff-rate quota applies a lower tariff to imports within the allowed quantity and a higher tariff once that quantity is exceeded. Therefore, the over-quota tariff rate is higher.
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