Question

A quota is:____________1. a limit placed on the quantity of goods that can be imported into a country.2. a subsidy granted to importers of a vital input. 3. a health and safety restriction imposed on an imported product. 4. a tax imposed by a government on goods imported into a country.

Answer 1

Answer:

1. a limit placed on the quantity of goods that can be imported into a country.

Explanation:

A quota is a barrier to international trade that countries establish to protect their industries in which they establish a maximum amount of products manufactured in other countries that can be introduced to their market. According to this, the answer is that a quota is 1. a limit placed on the quantity of goods that can be imported into a country.

Answer 2

Answer:

a limit placed on the quantity of goods that can be imported into a country.

Explanation:

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period. Countries use quotas in international trade to help regulate the volume of trade between them and other countries.

Quotas will reduce imports, and help domestic suppliers. However, they will lead to higher prices for consumers, a decline in economic welfare and could lead to retaliation with other countries placing tariffs on our exports