The revenue earned by the government in allocating quota licenses through resource-using application procedures is approximately equal to the revenue that it would earn from a tariff that resulted in the same import quantity.

Question

Quizplus · Accepted Answer

The revenue earned by the government through allocating quota licenses is usually higher than the revenue earned through tariffs because quota licenses can be sold for a profit, while tariffs only generate revenue based on a predetermined rate.

The Revenue Earned by the Government in Allocating Quota Licenses