A Quota Is

question 204

Multiple Choice

A quota is

• A) a government-imposed restriction on the quantity of a specific good that can be imported into a country.
• B) a tariff imposed on goods that are dumped into the home country.
• C) a tariff imposed on goods that are subsidized by their domestic governments and exported to other countries.
• D) a tariff based on the value of the imported good.

---

Definitions:

Miles

A unit of distance measurement equal to 5,280 feet or approximately 1.609 kilometers, used primarily in the United States and the United Kingdom.

Perfect Substitutes

Goods or services that can be used in exactly the same way and are interchangeable in consumption or use.

Income Effect

The variation in a person's or an economy's earnings and its effect on the amount of a product or service that is requested.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods.