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What Is the Difference Between a Tariff and a Quota

Question 116

Multiple Choice

What is the difference between a tariff and a quota?

A) A tariff causes an increase in the price,whereas a quota does not affect the price.
B) Both a tariff and a quota will affect the price,but a tariff has no effect on the quantity,whereas a quota will lead to a reduction.
C) Both a tariff and a quota will affect the price,but a tariff has no effect on the quantity,whereas a quota will lead to an increase.
D) A quota affects all foreign producers equally,whereas a tariff does not.
E) A tariff affects all foreign producers equally,whereas a quota does not.

Correct Answer: