A difference between a quota and a tariff is that with a quota the
A) exporting government collects an extra gain in the form of revenue.
B) domestic consumers are not harmed.
C) importing government collects an extra gain in the form of revenue.
D) person who has the right to import the good captures an extra gain.

Question

Quizplus · Accepted Answer

With a quota, the person who has the right to import the good captures an extra gain because they are able to sell the imported goods at a higher price due to the restriction on the quantity allowed into the country. Tariffs, on the other hand, result in the importing government collecting an extra gain in the form of revenue.

A Difference Between a Quota and a Tariff Is That