8
QuizMultiple Choice

International Trade

Question 8 • VT-GA-EOC-Personal Finance & Economics B ULHS

The United States decides it wants to encourage citizens to buy televisions that are made in America, so it decides to set a limit on the number of televisions that can be imported from China and Japan. This limit is an example of a __________.

Answer
A
tariff
B
free trade agreement
C
trade union
D
quota

Explanation

A quota is a limit on the quantity of a good that can be imported. Since the United States is limiting the number of televisions coming from China and Japan, this is a quota. A tariff is a tax on imported goods, not a numerical limit.

AI-written and checked against the verified answer.

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