Question

A tariff differs from a quota in that a tariff is:

A. levied on imports, whereas a quota is imposed on exports.

B. levied on exports, whereas a quota is imposed on imports.

C. a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported.

D. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.