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Question
Macroeconomics
Posted 9 months ago
What is the term for a quantity control that restricts the quantity sold in a market?
Choose 1 answer:
(A) Equilibrium price
(B) Tariff
(C) Price floor
D) Price ceiling
(E) Quota
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Answer from Sia
Posted 9 months ago
Solution
a
Incorrect Selection: The term 'Tariff' refers to a tax on imports or exports between sovereign states
b
Correct Term: 'Quota' is the correct term for a quantity control that restricts the quantity sold in a market. It directly limits the amount of a good that can be imported or sold
Answer
The term for a quantity control that restricts the quantity sold in a market is (E) Quota.
Key Concept
Quantity Control in Markets
Explanation
A quota is a type of quantity control that limits the amount of a product that can be imported or sold, distinct from tariffs, which are taxes on imports or exports.
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