Question

The tiny South Pacific island country of Maroji produces a lot of milk and milk-based products. To protect this industry, Maroji mandates that only designated trading companies can import cheese, each of which is allocated the right to import a maximum number of pounds of cheese each year. By doing this, Maroji controls the amount of imported cheese. This is an example of a(n)

a. import quota
b. import duty
c. import tariff
d. subsidy
e. local content requirement

Answer 1

a. import quota

Step-by-step explanation:

An import quota limits the amount of goods that can be imported into a country. Maroji stating the maximum amount of cheese to be imported is an import quota.

An import duty or tariff is tax paid on imported goods.

Subsidy is when the government reduces the cost of production in order to encourage production of a certain good.

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