A quota is a
A)tax imposed on each unit of an exported good
B)tax imposed on each unit of an imported good
C)change in the terms of trade between two nations
D)result of opportunity cost differentials between two nations
E)restriction on the quantity of a good that may be imported

Question

Quizplus · Accepted Answer

A quota is a restriction on the quantity of a good that may be imported. It limits the amount of a specific product that can be brought into a country, often to protect domestic industries from foreign competition or for political reasons.

A Quota Is a