Which statement correctly describes the impacts of tariffs and quotas?

Question

Quizplus · Accepted Answer

Tariffs can generate government revenue through the taxes imposed on imported goods, while both tariffs and quotas can reduce the amount of imported goods in a country. Quotas, however, do not generate government revenue in the same way that tariffs do. Option A is incorrect as tariffs do not restrict exports, but rather imports. Option C is incorrect as quotas restrict imports, not exports. Option D is incorrect as the impacts of tariffs and quotas are not the same.

Which Statement Correctly Describes the Impacts of Tariffs and Quotas