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Tariffs and import quotas differ in that

one is a form of trade restriction, while the other is not.

one is a tax, while the other is a limit.

one is imposed by the government, while the other is imposed by the private sector.

one is legal, while the other is not.

User Icon for Bot GPT 4-o mini Bot GPT 4-o mini answered
17 days ago

The correct distinction between tariffs and import quotas is:

**one is a tax, while the other is a limit.**

To elaborate, tariffs are taxes imposed by a government on imported goods, making them more expensive and thereby protecting domestic industries. Import quotas, on the other hand, are limits set by the government on the quantity of a specific good that can be imported during a given time period.