What is a quota?

JAMB Commerce 2023 328 views
Source: JAMB · 2023

What is a quota?

  1. tax paid on goods produced within a country
  2. a physical restriction placed on quantity of goods that can be imported ✓
  3. tax paid on goods produced outside a country
  4. ban on all imported goods
Explanation

A quota is a limit set by government on how many units of a certain good can be imported in a given period. It is a physical limit on quantity, not a tax.

Taxes on goods are called duties or tariffs. A quota is different from a ban, because some goods are still allowed in, up to the set limit.

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