when candas government puts a limit on how much American wheat and barley it will import this year, it is imposing which type of trade barrier
A Quota
B Embargo
C Tariff
D Opportunity cost
A Quota
The Canadian government, when it puts a limit on how much American wheat and barley it will import this year, is imposing a trade barrier known as a Quota.
When a government puts a limit on how much of a certain product it will allow to be imported, it is imposing a trade barrier known as a quota. A quota restricts the amount of goods that can be imported above a specified quantity, creating a limit on the quantity of goods that can enter a country.
To determine the type of trade barrier being imposed, we need to understand the different options provided:
A) Quota: A limit on the quantity of goods that can be imported.
B) Embargo: A complete ban on the import or export of goods with a specific country.
C) Tariff: A tax placed on imported goods, making them more expensive and less competitive in the domestic market.
D) Opportunity cost: The loss or sacrifice of potential gain from other alternatives when one choice is made.
Based on the description given, the correct answer is A) Quota.