In contrast to a tariff,a quota does not
A) reduce consumers' surplus.
B) increase producers' surplus.
C) generate revenues for government.
D) raise price.
E) c and d

Question

Quizplus · Accepted Answer

Quotas do not generate revenue for the government, unlike tariffs which can. Tariffs are taxes on imports that directly generate revenue for the government, while quotas simply limit the quantity of goods that can be imported without directly generating revenue.

In Contrast to a Tariff,a Quota Does Not