A quota is
A) the minimum amount that domestic firms can dump.
B) a specified maximum amount that can be imported.
C) a tax on imported goods or services.
D) a tariff on exports of goods or services.
E) a specified minimum amount that must be imported.

Question

Quizplus · Accepted Answer

A quota is a specified maximum amount that can be imported. It is a restriction on the amount of a particular good that can be imported into a country. This is different from a tariff, which is a tax on imported goods or services, and a minimum amount that must be imported, which is not a common trade restriction.

A Quota Is