A Major Difference Between a Tariff and a Quota Is

question 1

Multiple Choice

A major difference between a tariff and a quota is that a tariff

• A) will reduce imports, but a quota generally will not.
• B) can easily be rescinded, but a quota cannot.
• C) will reduce the ability of foreigners to obtain the purchasing power to buy a nation's export goods, but a quota will not affect the foreign demand for the nation's exports.
• D) typically generates tax revenue, while a quota does not.

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Definitions:

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