A Difference Between a Quota and a Tariff Is That

A difference between a quota and a tariff is that

A) a tariff generates a greater reduction in exports than does an import quota.
B) the government collects revenue from a tariff but does not collect revenue from an import quota.
C) an import quota increases profits of domestic producers more than a tariff.
D) a tariff generates a higher price than does an import quota.
E) an import quota creates a social loss and a tariff does not.

Correct Answer:

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