ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Example: The U.S. president increased the amount of imported peanuts allowed into the country by 100 million pounds per year. Example: In 1963, President Kennedy issued sanctions, which prohibited all trade with Cuba.

Detailed explanation-2: -Ultimately, quotas benefit and protect the producers of a good in a domestic economy, though the consumers end up paying more if the domestically produced goods are priced higher than imports. There are many reasons that tariffs and quotas may be used.

Detailed explanation-3: -A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period. Countries use quotas in international trade to help regulate the volume of trade between them and other countries.

Detailed explanation-4: -A quota is a tax levied against a specific good being imported into a country. A quota limits the quantity of a good that can be imported into a country. A tariff is a tax placed on an import. 5.

Detailed explanation-5: -An import quota is an NTB that places a direct restriction on the quantity of some goods that can be imported. An export quota is a restriction on the number of goods that can leave a country.