Explain how an import quota might be more inefficient than an import tariff that has the same impact on prices.

What will be an ideal response?

An import quota results in a difference in the price at which exporters buy and the price at which they sell. With a tariff, that difference is paid as a tax to the government -- so someone benefits. In the case of import quotas, exporters will get that same benefit as profit unless they have to compete (in terms of something like lobbying) to get the right to be the ones to export and import. If such political competition for the right to export and import exists, the effort expended in the process may be socially wasteful in the sense that it is a cost for the firms who export and import but it is not received as a benefit by anyone else.