A limit on the quantity of a good produced abroad that can be purchased domestically is called a(n)
A)tariff.
B)excise tax.
C)import quota.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

An import quota limits the quantity of a good produced abroad that can be purchased domestically by setting a cap on the amount of the good that can be imported. A tariff is a tax on imported goods, and an excise tax is a tax on a specific type of good produced and sold within a country. None of these options fit the definition of a limit on the quantity of a good produced abroad that can be purchased domestically, which is what an import quota does.

A Limit on the Quantity of a Good Produced Abroad