Concept:A quota is a government-imposed physical limit on the quantity of a good that can be imported into a country within a specific period.
Explanation:In international trade, a quota controls the volume of goods entering a domestic market.
It is not a tax, so it differs from a tariff.
A tariff is a tax charged on imported goods.
A quota also does not stop trade completely, so it differs from an embargo or total ban.
For example, if a government allows only
5,000 cars to be imported in one year, that limit is an import quota.
It restricts the physical quantity, not the value or price, of the goods.
Option B describes a quota exactly as a physical restriction placed on the quantity of goods that can be imported.
The other options refer to taxes or a complete ban, which do not define a quota.
Answer:B. A physical restriction placed on the quantity of goods that can be imported.