In what way does a tariff differ from a quota? A tariff is:
A) |
not significantly different from a quota; tariffs are imposed by world organizations, whereas quotas are imposed by individual countries. | |
B) |
a tax imposed by a foreign government, whereas a quota is a limit on the total amount of trade allowed. | |
C) |
a tax imposed on imports, whereas a quota is a limit on the number of units of a good that can be imported. | |
The difference between a tariff and a quota is that a tariff is a tax imposed on imported goods, while a quota is an import quantity limitation. Also, a tariff will generate tax revenue, but a quota does not. |