A key difference between tariffs and quotas is that
A) the government receives revenue with tariffs, but the importer receives added profit with quotas.
B) consumers are hurt with quotas but not with tariffs.
C) consumers are hurt with tariffs but not with quotas.
D) the government receives revenue with quotas, but the importer receives added profit with tariffs.

Question

Quizplus · Accepted Answer

Tariffs generate revenue for the government because they are taxes on imported goods paid by the importer. In contrast, quotas limit the quantity of goods that can be imported, and the limited supply can lead to higher prices, allowing importers or domestic producers to potentially make extra profit.

A Key Difference Between Tariffs and Quotas Is That