Question

What is a​ quota? A. A quota is the same thing as a voluntary export restraint. B. A numerical limit a government imposes on the quantity of a good that can be imported into a country. C. An agreement negotiated between two countries that places a numerical limit on the quantity of a good that can be imported by one country from the other country. D. All of the above.

Answer 1

Option (B) is correct.

Step-by-step explanation:

An import quota is defined as the restriction on the imports from the other nations. It is the direct restriction on the quantity of goods imported from the other countries. This restriction takes place to protect the domestic producers of the home nation from the foreign competition.

For example: The united states wants to import 50,000 cars from Japan but there is an import quota of 40,000 cars. So, the consumers in the United States won't be able to import remaining 10,000 cars.