Question

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

Answer 1

Answer:

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.