In which way are tariffs different from quotas?
A)They reduce the volume of imported products.
B)They raise the price of the imported products to consumers.
C)They increase the domestic quantity supplied of the product.
D)They raise government revenue.

Question

Quizplus · Accepted Answer

Tariffs and quotas both restrict imports, but tariffs raise government revenue while quotas do not. Tariffs are taxes placed on imported goods, which increase the price for consumers. Quotas restrict the amount of a particular product that can be imported, which reduces the volume but does not necessarily raise the price.

In Which Way Are Tariffs Different from Quotas