Which of the following is the best example of a quota?
A)a subsidy from the U.S. government to domestic manufacturers of tires to enable them to compete more effectively with foreign producers
B)a limit on the quantity of tires that can be imported from a foreign country
C)a 40% fee imposed on all imported tires
D)a tax placed on all tires sold in the domestic market to help offset the impact of lost jobs in the domestic tire industry

Question

Quizplus · Accepted Answer

A quota is a limit on the quantity of goods that can be imported from a foreign country. Option B clearly states a limit on the quantity of tires that can be imported, making it the best example of a quota among the given options. Option A is an example of a subsidy, option C is a tariff, and option D is a tax on all tires, which are not quotas.

Which of the Following Is the Best Example of a Quota