When governments specify the maximum amount of a good that may be imported in a given period of time,they are establishing a

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A quota is a restriction on the quantity of a particular good that can be imported into a country. It can be a fixed quantity or a percentage of domestic production. By setting a maximum amount of a good that can be imported in a given time period, governments are establishing a quota. This is different from a tariff, which is a tax on imported goods, or a dumping limit, which is a maximum price at which imports can be sold.

When Governments Specify the Maximum Amount of a Good That