A quota is
A)a tariff imposed on goods that are dumped in the country.
B)a law that prevents ecologically damaging goods to be imported into a country.
C)a market-imposed balancing factor that keeps prices of imports and exports in equilibrium.
D)a government-imposed restriction on the quantity of a specific good that can be imported.

Question

Quizplus · Accepted Answer

A quota is a specific limit or restriction on the quantity of a certain good that can be imported into a country. This is a government-imposed measure, often used to protect domestic industries or regulate the supply of certain goods. It is different from a tariff, which is a tax on imported goods, and from a market-based balancing factor like supply and demand.

A Quota Is