Question

An important difference between tariffs and quotas is that tariffs raise the price of the good in the country imposing the tariff. always generate tax revenue for the government. reduce imports. help domestic producers. g

Answer 1

The correct answer is the second option: Tarrifs always generate tax revenue.

Step-by-step explanation:

On the one hand, tariffs are taxes imposed by the government exclusively to imports and exports with the primary purpose of increase the revenue of the nation. Although it also looks for the protection of certains goods being a type of regulation regarding the international trade that goes around the world.

On the other hand, a quota is basically a limit imposed by the government with the only purpose of puting a maximum quantity to the number of imports that can entry in the country and therefore to protect the local industries and the domestic producers with it.