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

Question

Quizplus · Accepted Answer

An import quota is a government-imposed restriction on the quantity of a specific good that can be imported. This is done in order to protect domestic industries and promote local production of that particular product. Quotas are often used in conjunction with tariffs, which are taxes imposed on imported goods.

An Import Quota Is a