A Quota Is

question 113

Multiple Choice

A quota is

• A)a limit placed on the quantity of goods that can be imported into a country.
• B)a tax imposed by a government on goods imported into a country.
• C)a subsidy granted to importers of a vital input.
• D)a health and safety restriction imposed on an imported product.

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Definitions:

Trade Price

The price at which goods are sold between companies, typically lower than retail prices due to the absence of retailer markup.

Domestic Production

The total output of goods and services produced by a nation's economy within its territory.

Domestic Price

The value of merchandise or services within a nation's boundaries, unlike the prices set for global or export markets.

Free Trade

Global commerce conducted freely without the imposition of tariffs, quotas, or any limitations.