Question

A major difference between a tariff and a quota is that a tariff a. ​ will reduce imports but a quota generally will not. b. ​ typically generates tax revenue while a quota does not. c. ​ can easily be rescinded but a quota cannot. d. ​ 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.

Answer 1

Answer: B

Explanation: typically generates tax revenue while a quota does not. Since a quota is a limit on the quantity of goods imported, it does not bring much revenue to the federal government like a tax levy would.