American automakers are concerned about the availability of so many foreign cars to U.S. consumers, and that their chances to sell their own cars are limited. To directly correct the situation, they encourage Congress to impose a(n)
A) export quota.
B) export duty.
C) import quota.
D) tariff.
E) import duty.

Question

Quizplus · Accepted Answer

An import quota is a restriction placed on the amount of a particular good that can be imported into a country. By implementing an import quota on foreign cars, American automakers would have less competition in the market and a better chance to sell their own cars. Options A, B, D, and E all involve restrictions or taxes on exports, which would not necessarily benefit American automakers.

American Automakers Are Concerned About the Availability of So Many