A tariff differs from a quota in that a tariff is
A) levied on imports, whereas a quota is imposed on exports.
B) levied on exports, whereas a quota is imposed on imports.
C) a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported.
D) a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.

Question

Quizplus · Accepted Answer

A tariff is a tax imposed on imported goods, increasing their cost, while a quota is a restriction that sets a physical limit on the quantity of a good that can be imported.

A Tariff Differs from a Quota in That a Tariff