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Instead of taxing imports, a country caps the quantity that may enter each year. That cap is an:
AImport quota
BInterest cap
CExcise duty
DExport bounty
Answer & Solution
Correct answer: A. Import quota
1. No tax is charged.
2. The limit is on quantity.
3. It is an import quota.
_Source: OpenStax Principles of Economics 3e, Chapter 34, Globalization and Protectionism._
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