Canada wishes to import no more than 100 million tons of sugar from Brazil in any given year. What type of import restriction should it impose?
A) import duty
B) import quota
C) embargo
D) export duty

Question

Quizplus · Accepted Answer

An import quota is a restriction on the quantity of a good that can be imported. In this case, Canada wishes to limit the amount of sugar it imports from Brazil to no more than 100 million tons in any given year. So, imposing an import quota would be the appropriate choice. An import duty is a tax imposed on imported goods, but it does not limit the quantity of imports. An embargo is a complete ban on imports, which is not necessary in this case. Export duty is a tax imposed on exported goods, which is not relevant either as Canada is the importer, not the exporter.

Canada Wishes to Import No More Than 100 Million Tons