A quota on imports differs from a tariff because a quota directly sets a limit on the:
Correct answer: A. Quantity of goods imported
- A. Quantity of goods imported
- B. Tax rate on domestic income
- C. Price of exported goods
- D. Value of domestic production
Explanation
An import quota restricts the physical quantity of a good that may enter a country. A tariff instead imposes a tax on imports, which affects their price and may reduce demand without fixing a precise quantity limit.
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About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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