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A Key Difference Between a Quota and a Tariff Is

Question 64

Multiple Choice

A key difference between a quota and a tariff is that


A) a quota has a larger effect on quantity than on price.
B) the government of the importing country gains revenue from a tariff, but the price gap caused by a quota benefits domestic importers.
C) a tariff has a larger effect on quantity than on price.
D) All of the above answers are correct.

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