Which of the following is the best example of a quota?
A)a subsidy from the U.S.government to domestic manufacturers of residential air conditioners to enable them to compete more effectively with foreign producers
B)a limit on the quantity of residential air conditioners that can be imported from a foreign country
C)a $150 fee imposed on all imported residential air conditioners
D)a tax placed on all residential air conditioners sold in the domestic market to help offset the impact of emissions on the environment

Question

Quizplus · Accepted Answer

A quota is a limit placed on the quantity of goods that can be imported from a foreign country. Option B is the only one that represents a restriction on the amount of imported goods, making it the best example of a quota. Options A, C, and D represent other forms of government intervention in trade but not specifically the use of quotas.

Which of the Following Is the Best Example of a Quota