A Quota Is

question 88

Multiple Choice

A quota is

• A) a tariff imposed on goods that are dumped in the country.
• B) a law that prevents ecologically damaging goods from being 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.

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Definitions:

Barter System

An economic system where goods and services are directly exchanged for other goods and services without the use of money.

Monetary Exchange

The process of trading goods and services using money as a medium of exchange rather than direct barter.

Double Coincidence

A situation in a barter system where two parties each have something the other wants, allowing for an exchange without the need for money.

Limited Specialization

A situation in which individuals or entities focus on a restricted range of products or services to gain greater efficiency, but do not specialize to the extent that they produce only one good or service.