What is a Quota?

A.

Tax pad on goods produced within a country

B.

A physical restriction placed on quantity of goods that can be imported

C.

Tax paid on goods produced outside a country

D.

Ban on all imported goods

Correct answer is B

An import quota is a type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time.

Quota, in international trade, government-imposed limit on the quantity, or in exceptional cases the value, of the goods or services that may be exported or imported over a specified period of time