A major difference between a tariff and a quota is that a tariff
A) will reduce imports, but a quota generally will not.
B) can easily be rescinded, but a quota cannot.
C) will reduce the ability of foreigners to obtain the purchasing power to buy a nation's export goods, but a quota will not affect the foreign demand for the nation's exports.
D) typically generates tax revenue, while a quota does not.

Question

Quizplus · Accepted Answer

A tariff is a tax on imports that generates revenue for the government, while a quota is a limit on the quantity of goods that can be imported and does not generate revenue.

A Major Difference Between a Tariff and a Quota Is