Which of the following statements correctly identbify the difference in the revenue effect created by an import quota versus that of a tariff? Check all that apply. O Quotas always generate revenue for the govermment, whereas the tariff's revenue is uncertain. O Tariffs always generate revenue for the govermment, vhereas a quota's revenue is uncertain. O The revenue effect of an import quota is essentially the same as that of an equivalent tariff. D Unlike tariffs, quotas do not generate government revenue unless importers are charged a licensing fee.
Which of the following statements correctly identbify the difference in the revenue effect created by an import quota versus that of a tariff? Check all that apply. O Quotas always generate revenue for the govermment, whereas the tariff's revenue is uncertain. O Tariffs always generate revenue for the govermment, vhereas a quota's revenue is uncertain. O The revenue effect of an import quota is essentially the same as that of an equivalent tariff. D Unlike tariffs, quotas do not generate government revenue unless importers are charged a licensing fee.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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2. Comparing tariffs, quotas, and subsidies
Which of the following statements correctly identify the difference in the revenue effect created by an import quota versus that of a tariff? Check all
that apply.
O Quotas always generate revenue for the government, whereas the tariff's revenue is uncertain.
O Tariffs always generate revenue for the govermment, whereas a quota's revenue is uncertain.
O The revenue effect of an import quota is essentially the same as that of an equivalent tariff.
D Unlike tariffs, quotas do not generate government revenue unless importers are charged a licensing fee.
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