The best example of a quota from the list below is
A)a subsidy from the 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 limit on the quantity of a particular good that can be imported from a foreign country is known as a quota. The other options described are not examples of quotas - A is a subsidy, C is a tariff, and D is a tax that does not discriminate against foreign-produced tires.

The Best Example of a Quota from the List Below