Quotas are government-imposed limits on the _________ of goods trade between countries?
Correct answer: B. quantity
- A. prices
- B. quantity
- C. revenue
- D. costs
Explanation
A quota is a quantitative trade restriction, so it limits the quantity of a good that may be imported or exported during a specified period. Prices, costs and revenue are not the direct subject of the restriction.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
Similar to import tariffs import quotas tend to result in ?
________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?
Governments around the world tend to auction quota licenses ?
For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that ?
If the home country government grants a subsidy on a domestically produced good domestic producers tend to ?
A tariff-rate quota ?