A key difference between tariffs and import quotas is that
A)consumers are hurt with import quotas but not with tariffs.
B)consumers are hurt with tariffs but not with import quotas.
C)the government receives revenue with a tariff, but the importer makes a profit with an import quota.
D)the government receives revenue with an import quota, but the importer makes a profit with a tariff.
E)domestic producers gain with a tariff and lose with an import quota.

Question

Quizplus · Accepted Answer

With a tariff, the government collects revenue from the tax on imports, whereas with an import quota, importers can profit by selling limited goods at higher prices due to restricted supply.

A Key Difference Between Tariffs and Import Quotas Is That