Chapter 3, Problem 4.14P

To determine

The difference between a tariff and a quota and determine the agents that benefit or get harmed from such restrictions on imports

Concept Introduction:

Tariff: A tariff is a tax imposed by the government on the imported goods and services to make it less competitive than the goods produced in the domestic markets.

Quota: A restriction on the quantity of goods and services imposed by the government that can be imported into the domestic markets is termed as a quota.