A Quota Refers to

question 112

Multiple Choice

A quota refers to

• A)a government tax on products or services entering a country that primarily serves to raise prices on imports.
• B)government payments to companies or industries that serve to lower costs and provide a competitive advantage to domestic industries.
• C)a restriction placed on the amount of a product allowed to enter or leave a country.
• D)a minimum requirement for the purchase of specific products or services between two nations.
• E)a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.

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Definitions:

Transfer Payments

Cash or in-kind benefits given to individuals as outright grants from the government.

Double-Entry Bookkeeping

An accounting method that records each transaction in two accounts, ensuring that the total debits equals the total credits and maintaining the balance of the accounting equation.

Aggregate Output

The total quantity of goods and services produced in an economy in a given period.

Transfer Payment

A payment made by the government to individuals, without the government receiving any goods or services in return.