Tariffs and import quotas differ in that
A)one is a form of trade restriction,while the other is not.
B)one is a tax,while the other is a limit.
C)one is imposed by the government,while the other is imposed by the private sector.
D)one is legal,while the other is not.
E)one increases imports,while the other decreases imports.

Question

Quizplus · Accepted Answer

Tariffs are taxes imposed on imported goods, while import quotas are limits on the quantity of goods that can be imported. Both are forms of trade restrictions imposed by the government. Neither of them increases imports; in fact, they are used to reduce the amount of imports and protect domestic industries. Import quotas are legal and enforceable under international trade laws, while illegal import quotas are considered as smuggling.

Tariffs and Import Quotas Differ in That