Which of the following is the best example of a quota?
A)a limit imposed on the number of kilograms of cheese Canadians can import from Europe
B)a subsidy granted by the Canadian government to domestic dairy farmers so they can compete more effectively with foreign dairy farmers
C)a tax placed on all cheese sold in the domestic market
D)a $5,000 per-kilogram fee imposed on cheese imported into Canada

Question

Quizplus · Accepted Answer

A quota is a limit on the quantity of goods that can be imported into a country. In this case, the limit is on the number of kilograms of cheese that Canadians can import from Europe. The other options are not examples of quotas. B is an example of a subsidy, C is an example of a tax, and D is an example of a tariff or duty.

Which of the Following Is the Best Example of a Quota