Which statement best reflects the difference between tariffs and quotas


Asked by maham237 @ in Social Studies viewed by 298 People


A)
Tariffs raise prices on exports, while quotas set limits on imports.

B)
Tariffs raise prices on imports, while quotas set limits on exports.

C)
Tariffs raise prices on exports, while quotas set limits on exports.

D)
Tariffs raise prices on imports, while quotas set limits on imports.

Answered by maham237 @



The answer is the option D. Tariffs raise prices on imports, while quotas set limits on imports. Both tariffs and quotas are commerce restrictions to imports. The former implies the payment of duties when the imports enter the country which causes the increase of the prices. The latter consist on limiting the quantities of product that can be imported.


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