Quotas Answers
Definition: Quotas are upper limits, set by the government, on the quantity of some good that can be bought or sold; also referred to as a quantity control.
Example: New York City taxi medallions.
1. An excise tax generates revenue for the government, whereas a quota does not generate funds for the government.
2. A quota is a maximum limit set up by the government.
3. Possible answer: The government would set a quota to limit imports and protect domestic business.
Definition: Quotas are upper limits, set by the government, on the quantity of some good that can be bought or sold; also referred to as a quantity control.
Example: New York City taxi medallions.
1. An excise tax generates revenue for the government, whereas a quota does not generate funds for the government.
2. A quota is a maximum limit set up by the government.
3. Possible answer: The government would set a quota to limit imports and protect domestic business.