Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
100%
A numerical restriction on amount of a good imported is called a
Group of answer choices
quota.
trade tax.
tariff.
supply tax.
Expert Solution
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Step 1
International trade barriers:-
- Tariffs, quotas, and nontariff barriers are the most frequently encountered trade restrictions.
- A tariff is an import tax that the federal government levies and that drives up the cost of the commodity for the consumer.
- Tariffs, also referred to as taxes or import levies, typically have two goals: first, to reduce imports, and second, to generate income.
- A quota is indeed a restriction on the volume of a particular kind of product that can be imported into the nation. A quota may be voluntarily adhered to or imposed by law.
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