A supply restriction on imported goods, such as the government's restriction of imported oil for many years, is referred to as
A) an export quota.
B) an import quota.
C) a price floor.
D) a price ceiling.

Question

Quizplus · Accepted Answer

An import quota is a restriction on the quantity of goods that can be imported into a country. In this case, the government's restriction of imported oil is an example of an import quota as it limits the amount of imported oil that can be brought into the country. Option A is incorrect as an export quota restricts the quantity of goods that are exported from a country. Options C and D refer to price controls and are not relevant to this question.

A Supply Restriction on Imported Goods, Such as the Government's