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 revenue from a tariff but does not collect revenue from a quota.

Question

Quizplus · Accepted Answer

A tariff is a tax on imports, so the government collects revenue from it. A quota limits the quantity of imports but does not generate revenue for the government.

A Difference Between a Quota and a Tariff Is That