When Canada's government puts a limit on how much American wheat and barley it will import this year, it id imposing which type of trade barrier?
A embargo
B tariff
C opportunity cost
D quota
D quota
The correct answer is D) quota.
To determine the answer to this question, we need to understand the different types of trade barriers and analyze the scenario given.
A trade barrier is any government policy or regulation that influences international trade by restricting or obstructing the flow of goods and services between countries.
A) An embargo is a complete ban on trade or commercial activity with another country. In this case, Canada is not banning trade with the United States entirely; it is limiting the amount of wheat and barley it will import. Therefore, option A is incorrect.
B) A tariff is a tax or duty that a government imposes on imported goods. It is typically based on a percentage of the value of the goods. However, the scenario does not mention any taxes or duties being imposed on American wheat and barley. Hence, option B is incorrect.
C) Opportunity cost is the benefit or value of the next best alternative that must be forgone when making a choice. It does not directly relate to trade barriers. Therefore, option C is incorrect.
D) A quota is a specific limit on the quantity or value of certain goods that can be imported or exported within a specified period. In the given scenario, Canada's government is putting a limit on the amount of American wheat and barley it will import this year. This aligns with the definition of a quota. Therefore, option D is the correct answer.
In conclusion, the correct answer is D) quota.