One difference between a tariff and a quota is that the tariff brings in revenue to
the government while the quota benefits the foreign producer who is lucky enough to receive an import license.

Question

Quizplus · Accepted Answer

A tariff is a tax on imports, which generates revenue for the government imposing it. A quota limits the quantity of goods that can be imported, and the limited import licenses can indeed benefit foreign producers who receive them, often allowing them to charge higher prices.

One Difference Between a Tariff and a Quota Is That