Which of the following is the best example of a quota?
A)A limit imposed on the number of sport utility vehicles that Australia can import from Japan
B)A subsidy granted by the government to domestic garment manufacturers so they can compete more effectively with foreign garment manufacturers
C)A tax placed on all sport utility vehicles sold in the domestic market
D)A $5000 per-car fee imposed on all sport utility vehicles imported into Australia

Question

Quizplus · Accepted Answer

A quota is a restriction on the quantity of goods that can be imported or exported. In this example, a limit is imposed on the number of sport utility vehicles that Australia can import from Japan, which is a clear example of a quota. The other options involve subsidies, taxes, and fees, which are different types of trade barriers.

Which of the Following Is the Best Example of a Quota