The difference between the effects of an import quota and a tariff is that:

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Under an import quota, the decrease in consumer surplus due to the restriction on imports is partially redistributed to foreign producers in the form of higher prices for the limited amount of goods they are allowed to sell in the domestic market. However, under a tariff, the decrease in consumer surplus is redistributed to the domestic government in the form of increased revenue from the tax on imports. Therefore, the difference in the effects of a quota and a tariff is that under a quota, part of the decrease in consumer surplus is redistributed to foreign producers, while under a tariff, it is redistributed to the domestic government. The other options are not accurate statements about the differences between import quotas and tariffs.

The Difference Between the Effects of an Import Quota and a Tariff