The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country.Figure 21.2

-Which of the following tools of commercial policy acts as a quantitative restriction on imports?

Question

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country.Figure 21.2
 
-Which of the following tools of commercial policy acts as a quantitative restriction on imports?

Quizplus · Accepted Answer

A quota is a quantitative restriction on imports, which limits the quantity of a good that can be imported into a country. This is different from a tariff, which is a tax on imports, and a subsidy, which is a payment made to producers to encourage production. Health and safety regulations and government procurement are not directly related to commercial policy or import restrictions.

The Figure Given Below Depicts the Negatively Sloped Demand and Positively