An import quota specifies
A) the amount of funds that can be paid for any imported good.
B) the amount of taxes that must be paid on any imported good.
C) the maximum amount of an item that may be imported during a specified period.
D) the minimum amount of an item that may be imported during a specified period.

Question

Quizplus · Accepted Answer

An import quota is a trade restriction that limits the quantity of a particular good that can be imported over a specified period of time. Therefore, option C is the correct choice as it specifies the maximum amount of an item that may be imported. Option A is incorrect as an import quota does not specify the amount of funds that can be paid for any imported good. Option B is incorrect because an import quota does not determine the amount of taxes that must be paid on any imported good. Option D is also incorrect as it does not make sense for an import quota to specify a minimum amount of an item that may be imported during a specified period.

An Import Quota Specifies