The difference between tariff and quota

Question

Question

business economics

Answer 1

Answer #1

1.If we talk about tariff ,it is simply the tax that is put on any import export of goods and services .

but if talk about the quota, it is the restriction on the quantity of goods that to be imported .

2 The income is gone to the government account by tariff

in quota ,the income goes to the importers.

3.in tariff , there is revenue generation for the country and hence ultimately contribute to the GDP as well.

but if it is quota ,it is due to the normal quantity of the goods so it is not affect the GDP

Answer 2

Similar Homework Help Questions

the basic difference between a tariff and quota is that: a. a tariff raises the price...

the basic difference between a tariff and quota is that: a. a tariff raises the price of the product, whereas with quota, supply is limited to cause a higher price.. b. quota yields revenue to the government whereas tariff does not yeild any revenue. c. tariff reduces the import of the goods with greater certainty that quota as the amount of import restricted by quota depends on the price elasticity of demand for importable. d. quota can be imposed both...
From the importing country’s point of view, a tariff is better than a quota because a. a tariff has a smaller effect on imports than does a quota. b. a tariff has a larger effect on imports than does a quota. c. the tariff generates tax

1. From the importing country’s point of view, a tariff is better than a quota because a. a tariff has a smaller effect on imports than does a quota.b. a tariff has a larger effect on imports than does a quota.c. the tariff generates tax revenue for the government.d. both reduce imports but only quotas increase price.
Tariff and quota international trade economics

Under what conditions could an import quota and tariff have exactly the same effect in price and bring the same gains and losses (give a tariff level that restricts import just as much as quota would)?

Which of the following statements about a tariff and a quota is true? Group of answer...

Which of the following statements about a tariff and a quota is true? Group of answer choices With a quota the domestic production of the good increases, but not with a tariff. With a tariff the domestic price of the good increases, but not with a quota. With a tariff the government collects revenues, but not with a quota. all of these With a quota the quantity of imports falls, but not with a tariff.
The deadweight loss associated with an import tariff is smaller than a quota of the same...

The deadweight loss associated with an import tariff is smaller than a quota of the same impact because Cannot be determined from the information The government receives revenue from the tariff and not the quota. Price increases more with a tariff, O Quantity decreases more with a quota. The government receives revenue from the quota and not the tariff.
How is the quota different for Americans than a tariff?

How is the quota different for Americans than a tariff?

If the import supply curve is upward-sloping: Question 37 options: a tariff or quota can increase...

If the import supply curve is upward-sloping: Question 37 options: a tariff or quota can increase domestic aggregate surplus. a quota can increase domestic aggregate surplus, but a tariff cannot. a tariff can increase domestic aggregate surplus, but a quota cannot. neither a tariff nor a quota can increase domestic aggregate surplus.
1. 2) The deadweight loss associated with an import tariff is smaller than a quota of...

1. 2) The deadweight loss associated with an import tariff is smaller than a quota of the same impact because ________________. a. The government receives revenue from the quota and not the tariff. b. Price increases more with a tariff. c. Quantity decreases more with a quota. d. The government receives revenue from the tariff and not the quota. e. Cannot be determined from the information 3) Will this firm shutdown? Q = 5 Price: $30 MC = $10 AVC...
from a consumers point of view, would you prefer a quota or a tariff? why?

from a consumers point of view, would you prefer a quota or a tariff? why?

when making a choice whether to impose a tariff or a quota, which one is typically...

when making a choice whether to impose a tariff or a quota, which one is typically a better choice and why?