A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a
A)quota.
B)tariff.
C)GATT tax.
D)restrictive tax.
E)foreign excise tax.

Question

Quizplus · Accepted Answer

A quota is a specific limit placed on the amount of a product that can enter or leave a country, either in quantity or value. This is often used as a protectionist measure to limit the amount of foreign competition in a domestic market. Tariffs are taxes on imports or exports, GATT (General Agreement on Tariffs and Trade) refers to a global agreement on trade, and restrictive tax and foreign excise tax are not commonly used terms in international trade.

A Restriction Placed on the Amount of a Product Allowed