What is a Quota?
-
A.
Tax pad on goods produced within a country -
B.
A physical restriction placed on quantity of goods that can be imported -
C.
Tax paid on goods produced outside a country -
D.
Ban on all imported goods
Correct Answer: Option B
Explanation
An import quota is a type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time.
Quota, in international trade, government-imposed limit on the quantity, or in exceptional cases the value, of the goods or services that may be exported or imported over a specified period of time