A tariff is better than a quota because
A)it does not distort trade as much.
B)quotas are inflexible.
C)tariffs produce tax revenue.
D)quotas hurt domestic producers; tariffs hurt foreign producers.

Question

Quizplus · Accepted Answer

Tariffs generate tax revenue for the government imposing them, which is a significant advantage over quotas that do not produce any direct financial benefit for the government.

A Tariff Is Better Than a Quota Because