A foreign-made household appliance is popular and is highly competitive with the same product manufactured domestically.To give the domestic industry a better chance to operate profitably,the government restricts the number of these appliances that can be imported by applying a(n)_____.

Question

Quizplus · Accepted Answer

The scenario describes a restriction on the number of imported appliances, which is an example of a quota. An embargo is a complete ban on trade with a particular country, which is not applicable in this case. A protective tariff is a tax on imported goods to make them more expensive than domestic products, which is not mentioned in the scenario. A revenue tariff is a tax on imported goods primarily to generate revenue for the government, which is also not applicable in this scenario.

A Foreign-Made Household Appliance Is Popular and Is Highly Competitive