Answer to Question #259627 in Microeconomics for Hini

Question

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?

Answer 1

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.