Assertion (A): A quota limits the quantity of a good that can be imported.
Reason (R): A tariff is a tax on imported goods.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Both are true definitions.
But what a tariff is does not explain what a quota does, so R does not explain A.

Concept: Tariffs and quotas
Typical timeTypical: 70 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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Ten questions from Industry & Trade, 1950–90, at your own pace.

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Assertion (A): A quota limits the quantity of a good that can be imported.Reason (R): A tariff is a tax on imported goods.

Explanation

Assertion (A): A quota limits the quantity of a good that can be imported.
Reason (R): A tariff is a tax on imported goods.