A quota is a restriction on the quantity of goods that can enter a country. This is often used as a protectionist measure to limit foreign competition and protect domestic industries. It is not a tax on imports or exports, nor does it limit the quantity of goods leaving the country.

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A Quota

Question 113

Multiple Choice

A quota

A) imposes a tax on goods entering the country.
B) limits the quantity of goods leaving the country.
C) subsidizes the production of goods leaving the country.
D) limits the quantity of goods entering the country.
E) is a tax on imports.

Correct Answer: