multiple choice question 2006 (1 Viewer)

[Kaatie]

http://www.boardofstudies.nsw.edu.au/hsc_exams/hsc2006exams/pdf_doc/economics_06.pdf

someone please explain how number 7 is not an increase in the quota? as the quantity has decreased casuing the price to increase

 

[Kaatie]

isnt an increase in the quota mean theyre making the quota bigger, hence bigger quota=less amount of goods allowed in?

 

[gnrlies]

That's what I thought originally but a quota is really the amount of goods that can be legally imported into a country.

The quantity of goods of a specific kind that a country permits to be imported without restriction or imposition of additional duties.
www.usaexportimport.com/glossary.php

An import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country
en.wikipedia.org/wiki/Import_quota

Means of restricting the quantity of imports through import licenses
www.businessdictionary.com/definition/import-quota.html

Hope that helps.

Yes the absolute size of a quote refers to the quantity of imports allowed. Not to be confused with "wow that quota has a whopping BIG effect on trade"