Answered: A numerical restriction on amount of a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A numerical restriction on amount of a good imported is called a

Group of answer choices

quota.

trade tax.

tariff.

supply tax.

Expert Solution

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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