A Quota Is a

question 7

Multiple Choice

A quota is a

• A)tax imposed on each unit of an exported good
• B)tax imposed on each unit of an imported good
• C)change in the terms of trade between two nations
• D)result of opportunity cost differentials between two nations
• E)restriction on the quantity of a good that may be imported

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Definitions:

Tax Rate

Represents the percentage at which an individual or corporation is taxed, often varying based on income level, type of income, or jurisdiction.

Sale Price

The actual price at which a commodity or service is sold to customers.