Any restriction of international trade that is accomplished by a quota can also be accomplished by a tariff.

Question

Quizplus · Accepted Answer

A quota restricts the quantity of a good that can be imported, while a tariff places a tax on imported goods. However, if the tariff rate is set high enough, it can effectively limit the quantity of imports to the same level as a quota. Therefore, any restriction achieved through a quota can also be achieved through a tariff.

Any Restriction of International Trade That Is Accomplished by a Quota