A quota is a legal limit on the quantity of a good that may be imported. It is usually imposed by a country to protect its domestic industries from foreign competition or to regulate the flow of imports. Quotas are different from tariffs or taxes, which are levied on the value of goods imported or exported.

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A Quota Is a

Question 39

Multiple Choice

A quota is a

A) legal limit on the quantity of a good that may be imported.
B) legal limit on the price of a good that may be imported.
C) tax imposed on an imported good.
D) tax imposed on an exported good.
E) menu cost.

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