The Difference Between a Tariff and a Quota Is That

question 214

Multiple Choice

The difference between a tariff and a quota is that the

• A)government collects more revenue by imposing a quota.
• B)government collects no revenue by imposing a quota.
• C)producer and consumer prices are equal when a tariff is imposed, but different when a quota is imposed.
• D)producer and consumer prices are equal when a quota is imposed, but different when a tariff is imposed.
• E)tariff is more effective at restricting imports.

---

Definitions:

Consumed

Utilized or used up completely, typically referring to resources, products, or services that have been utilized by end-users.

Mode of Transportation

The method or means by which people, materials, and goods are moved from one place to another, such as by land, air, sea, or rail.

Cargo

Goods or produce transported, generally for commercial gain, by ship, aircraft, train, or truck.

Expensive

An attribute of goods or services characterized by a high price point, often due to quality, scarcity, or brand reputation.