When an importing country sets limits on the amount of goods it will accept in certain product categories it is called a(n) ?
Correct answer: A. quota
- A. quota
- B. barrier
- C. tariff
- D. embargo
Explanation
A quota is a quantitative limit on how much of a product may be imported. A tariff raises the price of imports through a tax, while an embargo generally prohibits trade altogether.
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
________ is the practice of adopting policies and developing strategies that both sustain the environment and produce profits for the company ?
Consumer goods with unique characteristics or brand identification often requiring a special purchase effort are called?
A(n) _____ is a retail store that carries a narrow product line with a deep assortment within that line ?
The Wheeler-Lea Act gives the Federal Trade Commission the power to regulate ?
_______ beliefs values are open to some degree of change ?
Drop shippers perform which of the following functions ?