Q.

'Quota' is -

A. tax levied on imports
B. imports of capital goods
C. limit on the quantity of imports
D. limit on the quantity of exports
Answer» C. limit on the quantity of imports
Explanation: An import quota is a limit on the quantity of a good that can be produced abroad and sold domestically. It is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can he imported into a country in a given period of time. The primary goal of import quotas is to reduce imports and increase domestic production of a good, service, or activity, thus "protect" domestic production by restricting foreign competition.
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