Question

Angola, one of Nigeria's trading partners, is trying to protect its domestic oil refineries from competition. To do so, it limits the amount of refined oil that can be imported from other countries. What is this an example of?
A.
an embargo

B.
a quota

C.
a subsidy

D.
a tariff

Answer 1

The situation described is an example of **B. a quota**. A quota is a limit on the quantity of a particular good that can be imported, which is intended to protect domestic industries from foreign competition.