Production quota

It is typically set by a government or an organization, and can be applied to an individual worker, firm, industry or country.

[1] A quota refers to a measure that limits, either minimum or maximum, on a particular activity.

In short, it limits the number of goods a country can export or import during a certain period of time.

Quotas, like other trade restrictions, are typically used to benefit the producers of a good at the expense of consumers in that economy.

[citation needed] While it may seem like a good idea for producers to enact a production quota, it has long-term negative consequences.