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What Is a Major Difference Between a Tariff and a Quota

Question 26

Multiple Choice

What is a major difference between a tariff and a quota?


A) A tariff typically generates tax revenue while a quota does not.
B) A tariff 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 demand of foreigners for the nation's exports.
C) A tariff will reduce imports but a quota generally will not.
D) A tariff can easily be rescinded but a quota cannot.

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