An import quota is similar to a ________ in its effect on imports,except that an import quota ________.
A) tariff; does not generate revenue
B) tariff; generates revenue
C) subsidy; does not generate revenue
D) subsidy; generates revenue
E) tariff; does not result in an efficiency loss.

Question

Quizplus · Accepted Answer

An import quota and a tariff both limit imports, but a tariff generates revenue for the government, while an import quota does not.

An Import Quota Is Similar to a ________ in Its