Which of the following best describes numerical limitations on the quantity of products that can be imported?

• A. Tariffs
• B. Voluntary export restraints
• C. Import quotas
• D. Export subsidies

Answer: (C)

Verified step by step guidance

1. Understand the definitions of each term: Tariffs are taxes imposed on imported goods, increasing their price but not directly limiting quantity.
2. Voluntary export restraints are agreements where exporting countries limit the quantity of goods exported to another country, but these are not numerical limits imposed by the importing country.
3. Import quotas are explicit numerical limits set by the importing country on the quantity of a product that can be imported, directly restricting the amount allowed.
4. Export subsidies are financial supports given by the exporting country to encourage exports, which do not limit quantities but rather promote more exports.
5. Therefore, the best description of numerical limitations on the quantity of products that can be imported is 'Import quotas' because they set a fixed maximum quantity allowed.