An import quota is:

Question

An import quota is:

Quizplus · Accepted Answer

An import quota is a limit on the amount of a particular good that can be imported into a country. It is usually imposed by the government to protect domestic producers from foreign competition and to control imports in order to achieve certain policy objectives, such as reducing a trade deficit or promoting national security. It is different from a tariff, which is a tax imposed on imported goods.  Choice B is incorrect as it describes a tariff. Choice C is not true as an export quota is a limit on how much of a good can be exported. Choice D is not true as the first three options are all possible trade restrictions that governments may choose to use.

An Import Quota Is