The Main Difference Between a Tariff and an Import Quota

Multiple Choice

The main difference between a tariff and an import quota is that:

A) an import quota reduces imports more sharply than a tariff.
B) a tariff will cause higher prices than an import quota.
C) a tariff generates tax revenue,while an import quota generates rents to the license holders.
D) a tariff will cause lower prices than an import quota.