À government is considering a quota and a tariff, both of which will reduce imports by the same amount. Why might the government prefer one of these policies to the other?

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À government is considering a quota and a tariff, both of which will reduce imports by the same amount. Why might the government prefer one of these policies to the other?

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Md Ariful Islam · Answer 1 · Apr 24, 2024 08:21:28

The government might prefer a quota when the quantity of imports is to be limited in order to increase the level of domestic production.

On the other hand, the government might prefer a tariff ( that is, an imposition of a tax on imports) in order to discourage the importation of a particular commodity.

À government is considering a quota and a tariff, both of which will reduce imports by the same amount. Why might the government prefer one of these policies to the other?

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