QUOTA Vs TARIFF

QUOTA VERSES TARIFF

MEANING
Tariff : Tariff refers to the tax levied on import or export of goods.
Quota : Quota refers to the restrictions imposed on the quantity                  of goods imported.

Effect on GDP
Tariff : Increases GDP
Quota : Decreases GDP

INCOME
Tariff : To Government
Quota : To importer

RESULTS IN
Tariff : Fall in consumers surplus and rise in producers surplus
Quota : Fall in consumers surplus

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