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

Question

Quizplus · Accepted Answer

Tariffs are taxes imposed on imported goods, generating revenue for the government. In contrast, quotas limit the quantity of goods that can be imported without generating direct revenue for the government.

A Difference Between a Quota and a Tariff Is That