Final answer:
An import quota is similar to a tariff in its effects but differs because a quota does not generate revenue for the government, whereas a tariff does through taxes on imported goods.
Step-by-step explanation:
An import quota is similar to a tariff in its effect on imports, except that an import quota does not generate revenue. Unlike tariffs that involve taxes on imported goods—thus generating revenue for the government—a quota simply sets a physical limit on the quantity of a specific good that can be imported into a country. In terms of economic impact, both trade barriers raise the domestic price of the good, reduce the quantity consumed, and protect domestic industries from foreign competition. However, the government does not receive any financial gain from a quota, as it does with tariff revenues.