Which of the following is the best example of a quota? A. a subsidy granted by the U. S. government to domestic sport utility vehicle manufacturers so they can compete more effectively with foreign sport utility vehicle manufacturers B. a tax placed on all sport utility vehicles sold in the domestic market C. a $5,000 per-car fee imposed on all sport utility vehicles imported into the United States D. a limit imposed on the number of sport utility vehicles that the United States can import from Japan

Question

Jaylah Ibarra

Business

19 July, 12:28

Which of the following is the best example of a quota? A. a subsidy granted by the U. S. government to domestic sport utility vehicle manufacturers so they can compete more effectively with foreign sport utility vehicle manufacturers B. a tax placed on all sport utility vehicles sold in the domestic market C. a $5,000 per-car fee imposed on all sport utility vehicles imported into the United States D. a limit imposed on the number of sport utility vehicles that the United States can import from Japan

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Answers (1)

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Antony Solis · Answer 1

The correct answer is option D.

Explanation:

A quota is a non-tariff restriction on trade. It is either a quantitative limit or a limit on the monetary value of products that can be traded. It a restriction imposed by the government to protect domestic producers from foreign competition.

In all the given examples the last one represents a quota. It is a limit on the number of products that can be imported.