An import quota is a
A)tariff imposed on goods that are dumped in the country.
B)law that prevents ecologically damaging goods from being imported into a country.
C)market-imposed balancing factor that keeps prices of imports and exports in equilibrium.
D)government-imposed restriction on the quantity of a specific good that can be imported.
E)tax in an international market.

Question

Quizplus · Accepted Answer

An import quota is a government-imposed restriction on the quantity of a specific good that can be imported. It is a measure used by a government to control the amount of goods imported into a country. The quota can be set as a specific quantity or as a percentage of the total quantity of goods imported. The purpose of an import quota is to protect domestic industries by limiting the amount of foreign competition they face.

An Import Quota Is a