A quota is
A) A limit on the quantity of a good that may be imported.
B) A tax imposed on imported goods.
C) A prohibition against trading a good.
D) An elimination of trade to nurture an infant industry.

Question

Quizplus · Accepted Answer

A quota is a limit on the quantity of a good that may be imported. It is usually imposed by a government to restrict foreign competition and protect domestic industries. The quota may be applied to a specific product, country or time period. It is different from a tariff, which is a tax imposed on imported goods.

A Quota Is