Question: 37. What is the major difference between a tariff and a quota that has equivalent effects upon domestic production? 0 a. A quota does not

37. What is the major difference between a tariff and a quota that has equivalent effects upon domestic production? 0 a. A quota does not lead to an increase in domestic prices, while a tariff does. The government collects tariff revenue with a tariff; other domestic groups (e. g., O b. domestic producers, importers) may collect the equivalent of this tariff revenue with a quota. The government collects area c With a tariff; exporters collect area c with a quota, O 0' thus leading to n'ther deadweight losses for the quotaimposing country. The government collects area c with a tariff; importers collect area c with a quota, Q d. offsetting consumption deadweight losses and leading to lower deadweight losses for the quota-imposing country
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