Which of the following policies permits a specified quantity of goods to be imported at one tariff rate and applies a higher tariff rate to imports above this quantity?
A) Tariff quota
B) Import tariff
C) Specific tariff
D) Ad valorem tariff

Question

Quizplus · Accepted Answer

This policy is called a tariff quota, where a lower tariff rate applies to imports up to a certain quantity, but imports above this quantity are subject to a higher tariff rate. This is generally utilized to protect domestic producers by limiting the amount of foreign competition they face.

Which of the Following Policies Permits a Specified Quantity of Goods