The difference between a tariff and a quota is that the revenue from the tariff goes to the
A) domestic consumer.
B) domestic producer.
C) domestic government.
D) foreign producers.
E) foreign government.

Question

Quizplus · Accepted Answer

Tariffs are taxes on imported goods, and the revenue generated from them goes to the government of the country that implemented the tariff. Quotas, on the other hand, limit the quantity of imported goods, but they do not generate revenue for the government. Instead, quotas often result in higher prices for consumers and increased profits for domestic producers.

The Difference Between a Tariff and a Quota Is That