Question

Which of the following is an example of an import quota?

a.5 percent of the value of an imported good
b.621,780 kilograms limit of an imported good
c.$220 per ton of an imported good
d.7 percent of the potential profits from an imported good

Answer 1

B.) 621,780 kilograms limit of an imported good (is correct on grad point )

Answer 2

The correct answer is B.

An import quota is used by protectionist policymakers to establish a quantitative restriction on the amount that can be imported of a certain product and/or from a certain country or trade area.

Therefore, a quota is expressed in kilograms (621,780 kg) and not as a percentage of the total value of the goods imported (option A)as in the case of tariffs, not as a price to be paid in exchange for a certain quantity of goods (option C) or also not as a percentage of the total profits that will be made with the imported goods.