A quota is
A) a government-imposed restriction on the quantity of a specific good that can be imported into a country.
B) a tariff imposed on goods that are dumped into the home country.
C) a tariff imposed on goods that are subsidized by their domestic governments and exported to other countries.
D) a tariff based on the value of the imported good.

Question

Quizplus · Accepted Answer

A quota is a government-imposed restriction on the quantity of a specific good that can be imported into a country. It is often used as a trade barrier to protect domestic industries from foreign competition. Quotas may be set up by a government to limit the amount of a particular product that can be imported, effectively creating a limit on the quantity available in the domestic market. This can lead to higher prices for consumers and lower competition in the domestic market.

A Quota Is