PRC-3 · Chapter 20 · Question 16 of 30
To protect local car manufacturers, the government passes a law stating that no more than 5,000 foreign-made vehicles may be imported into the country this year. This physical restriction is an:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Import Quota
Explanation
An import quota is a strict, direct quantitative limit on the maximum volume or number of a specific good that can be legally imported over a given period.
More Balance of Trade and Payments MCQs
- Q18To aggressively protect domestic car manufacturers, the government passes a law stating that no more than 5,000 foreign-made vehicles may…
- Q19The government places a 30% financial tax on all imported steel to make it artificially more expensive than locally produced steel. This…
- Q20To destroy foreign competition, an international corporation heavily subsidizes its wheat and sells it into Pakistan at a price…
- Q21A Pakistani engineer working in Saudi Arabia sends a portion of his monthly salary back to his family in Lahore. In Pakistan's Balance of…
- Q22If a country's government utilizes highly Expansionary Fiscal Policy (massive spending and tax cuts) during a boom, what is the most…