Which of the following statements about a tariff and a quota is true?
A) With a tariff the government collects revenues,but not with a quota.
B) With a quota the quantity of imports falls,but not with a tariff.
C) With a tariff the domestic price of the good increases,but not with a quota.
D) With a quota the domestic production of the good increases,but not with a tariff.
E) all of the above

Question

Quizplus · Accepted Answer

A tariff generates revenue for the government as it is a tax on imports, whereas a quota limits the quantity of imports without generating direct revenue.

Which of the Following Statements About a Tariff and a Quota