In a tariff-rate quota system, how do the tariff rates inside and outside the quota compare?

Show Answers

The tariff applied within the quota is higher than the tariff applied beyond the quotaThe tariff imposed outside the quota is higher than the tariff applied within the quotaThe tariff rates inside and outside the quota are the sameThe sum of the tariffs inside and outside the quota equals 100 percentThe tariff outside the quota is lower than the tariff within the quota

Explanation

In a tariff-rate quota system, goods imported within the quota limit are subject to a lower tariff, while imports exceeding the quota face a higher tariff rate. Therefore, the tariff rate outside the quota is greater than the tariff rate inside the quota.