A quota on imports

fixes the quantity of a good that can be importedCorrect answerYour answeris a tax on each unit of the good importedCorrect answerYour answerpays exporters a fixed sum per unit sold abroadCorrect answerYour answerremoves all limits on what can be importedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

A quota caps the quantity; a tariff taxes it.

Concept: Tariffs and quotas
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsImport substitution, tariffs and quotas

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Ten questions from Industry & Trade, 1950–90, at your own pace.

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A quota on imports

Explanation