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The Main Difference Between a Tariff and a Quota Is

Question 186

Essay

The main difference between a tariff and a quota is:
A.a quota reduces imports more sharply than a tariff.
B.a tariff will cause higher prices than a quota.
C.a tariff generates tax revenue for the government, while a quota generates rents to the license-holders.
D.a tariff will cause lower prices than a quota.

Correct Answer:

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a tariff generates tax revenue...

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