A key difference between tariffs and quotas is that
A) consumers are hurt with quotas but not with tariffs.
B) consumers are hurt with tariffs but not with quotas.
C) the government receives revenue with tariffs, but the importer receives added profit 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 as they are taxes on imports, while quotas limit the quantity of imports, potentially allowing importers to charge higher prices and earn added profits.

A Key Difference Between Tariffs and Quotas Is That