A foreign-made household appliance is popular and is highly competitive with the same product manufactured domestically. To give the domestic industry a better chance to operate profitably, the government restricts the number of these appliances that can be imported by applying a(n) ______.
A) import quota
B) embargo
C) protective tariff
D) revenue tariff

Question

Quizplus · Accepted Answer

An import quota is a restriction on the quantity of goods that can be imported into a country during a specified period of time. In this scenario, the government is limiting the number of foreign-made household appliances that can be imported, giving the domestic industry a better chance to operate profitably. An embargo is a complete ban on imports or exports, which is not applicable in this scenario. A protective tariff is a tax on imported goods, which is not mentioned as a measure taken by the government. A revenue tariff is a tax that is imposed on imported goods to raise revenue for the government, which is not relevant in this scenario.

A Foreign-Made Household Appliance Is Popular and Is Highly Competitive