Which of the following parties benefits from an import quota but not from a tariff?
A) The domestic government.
B) Domestic consumers.
C) Domestic producers.
D) The person with the right to import the good.
E) The foreign government.

Question

Quizplus · Accepted Answer

The person with the right to import the good benefits from an import quota because they can sell the limited available import rights at a premium, unlike with a tariff, where the benefit primarily goes to the domestic government in the form of tariff revenue.

Which of the Following Parties Benefits from an Import Quota