A difference between a quota and a tariff is that
A)a tariff generates a higher price than does an import quota.
B)a tariff generates a greater reduction in exports than does an import quota.
C)an import quota increases profits of domestic producers more than a tariff.
D)the government collects revenue from a tariff but does not collect revenue from an import quota.
E)an import quota creates a social loss and a tariff does not.

Question

Quizplus · Accepted Answer

Tariffs generate revenue for the government through the taxes levied on imported goods, whereas import quotas do not generate any revenue for the government.

A Difference Between a Quota and a Tariff Is That