A quota is a restriction or a limit on the quantity of a product that can be imported into a country. It is not a tax, and it does not restrict the number of products that can be exported from a country. Therefore, choice C, which states that a quota directly limits the total quantity of a good that can be imported, is the correct answer.

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A Quota

Question 45

Multiple Choice

A quota:

A) is a tax on imports.
B) is a tax on exports.
C) directly limits the total quantity of a good that can be imported.
D) directly limits the total quantity of a good that can be exported.

Correct Answer: