A difference between a quota and a tariff is that
A) the government collects revenue from a tariff but does not collect revenue from a quota.
B) a tariff generates a higher price than does a quota.
C) a tariff generates a greater reduction in exports than does a quota.
D) a quota increases the profits of domestic producers more than a tariff.

Question

Quizplus · Accepted Answer

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

A Difference Between a Quota and a Tariff Is That