Final answer:
A tradable or transferable quota is a production or consumption quota that can be bought or sold, used to control the total quantity of certain goods or services.
Step-by-step explanation:
A production or consumption quota that can be bought or sold is called a tradable permit or transferable quota. These are often used in regulatory programs to control the total quantity of certain goods or services. For example, import quotas restrict the number of goods that can be imported, influencing the global trade and oftentimes reducing living standards by limiting access to imported goods and services. Quotas are a way to exert control over trade, as seen with the Reagan Administration's restriction on Japanese automobiles in the 1980s or the efforts to protect domestic textile industries. Although quotas can maintain certain economic objectives, they tend to alter the balance between supply and demand, thereby affecting prices and the quantity demanded.