An import quota is a limit on the quantity of a good that can be imported. It is often used as a trade protection measure to restrict foreign competition and protect domestic industries. Unlike a tariff, which is a tax on imported products, an import quota directly restricts the amount of imports that can enter the domestic market.

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An Import Quota Is

Question 104

Multiple Choice

An import quota is:

A) a tax on imported products.
B) a limit on the quantity of a good that can be imported.
C) the revenue received from a tariff.
D) the cost of imposing a tariff.

Correct Answer: