
Which of the following statements explains the difference between tariffs and quotas
A) Tariffs reduce the quantity of the imports and raise the domestic price of the good but quotas do not.
B) "Voluntary" limits on Canadian exports of hogs are better for the United States than U.S.tariffs placed on Canadian hog exports.
C) Tariffs and quotas differ in that tariffs work like a tax and therefore impose deadweight losses, whereas quotas do not impose deadweight losses.
D) A tariff raises revenue for the government, whereas an import quota creates surplus for those who get the licences to import.
Correct Answer:
Verified
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