When Bob began exporting his famous barbecue beef he found that one country would let him bring only 1000 pounds of beef into the country each year. Bob had just discovered a(n)
A) embargo.
B) local content law.
C) quota.
D) tariff.
E) subsidy.

Question

Quizplus · Accepted Answer

The situation described is a quota, which is a type of trade barrier that limits the amount of a particular good that can be imported into a country. In this case, the country is only allowing Bob to bring in 1000 pounds of beef per year. Embargoes, local content laws, tariffs, and subsidies are all also types of trade barriers, but they each have different characteristics and effects.

When Bob Began Exporting His Famous Barbecue Beef He Found