An important difference between tariffs and quotas is that tariffs
A) raise the price of the good.
B) generate tax revenue for the government.
C) stimulate international trade.
D) help domestic producers.
E) are paid by foreign producers.

Question

Quizplus · Accepted Answer

Tariffs generate tax revenue for the government because they are a tax imposed on imported goods, whereas quotas do not generate revenue as they limit the quantity of goods that can be imported.

An Important Difference Between Tariffs and Quotas Is That Tariffs