Due to the rising price of gasoline, Sharon is looking for a car with better gas mileage. She hopes to purchase the newest Ford Fiesta, an imported car with hybrid technology. However, Fiestas are hard to find because the government in Sharon's country has limited the number of Fiesta cars that can be imported each year. Sharon is witnessing the impact of a(n) _____ imposed by her country.

Question

Quizplus · Accepted Answer

A quota is a limit set by a government on the quantity of a product that can be imported into the country. In this scenario, the government has limited the number of Ford Fiesta cars that can be imported each year. A tariff is a tax on imported goods, and there is no mention of any tax being imposed on the Ford Fiesta. A voluntary export restriction is an agreement between two countries where one country agrees to limit the quantity of a product it exports to another country, and there is no mention of any such agreement in this scenario. An embargo is a ban on trade with a particular country or product, and there is no mention of any ban on the Ford Fiesta. Therefore, the best choice is B, quota.

Due to the Rising Price of Gasoline, Sharon Is Looking