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A Level Economics (9708)•9708/14/M/J/22
Question 20 from 9708/14/M/J/22

Explanation

Import Quota as a Trade Restriction

Steps:

  • Define import quota: A government limit on the quantity of specific goods that can enter a country.
  • Compare to choices: Eliminate options that describe bans, regulations, or taxes instead of quantity limits.
  • Identify match: Option D directly states the quantity limit, aligning with the definition.
  • Confirm: Quotas control supply without prohibiting imports entirely.

Why D is correct:

  • An import quota restricts the physical volume or value of imports allowed, as defined in international trade law like WTO agreements, to protect domestic industries.

Why the others are wrong:

  • A: A ban is an embargo, which prohibits all imports of goods, not just limits quantity.
  • B: Strict regulations refer to non-tariff barriers like safety standards, not quantity caps.
  • C: A tax is a tariff, which increases import prices through duties, not by limiting amounts.

Final answer: D

Topic: Protectionism

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