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15 November, 13:08

Which of the following is the best example of a quota? A. a subsidy granted by the U. S. government to domestic sport utility vehicle manufacturers so they can compete more effectively with foreign sport utility vehicle manufacturers B. a tax placed on all sport utility vehicles sold in the domestic market C. a $5,000 per-car fee imposed on all sport utility vehicles imported into the United States D. a limit imposed on the number of sport utility vehicles that the United States can import from Japan

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  1. 15 November, 14:31
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    The correct answer is option D.

    Explanation:

    A quota is a non-tariff restriction on trade. It is either a quantitative limit or a limit on the monetary value of products that can be traded. It a restriction imposed by the government to protect domestic producers from foreign competition.

    In all the given examples the last one represents a quota. It is a limit on the number of products that can be imported.
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