Exhibit 30-1
-An upper limit on the quantity of a good that may be imported or sold is called a(n)

Question

Exhibit 30-1 
-An upper limit on the quantity of a good that may be imported or sold is called a(n)

Quizplus · Accepted Answer

A quota is a specific limit on the quantity of a good that can be imported or sold, regardless of its price. A per-unit tariff is a tax that is applied based on the quantity or unit of the good being imported or sold. An ad valorem tariff is a tax that is applied as a percentage of the value of the imported or sold good. A specific tariff is a fixed tax that is applied per unit of the imported or sold good. A value-added tax is a tax on the value added to a good at each stage of production and distribution. The question specifically asks for the definition of an upper limit on the quantity of a good that may be imported or sold, which is a quota. Therefore, the correct answer is C.

Exhibit 30-1 -An Upper Limit on the Quantity of a Good That