Which of the following is an example of a quota?
A)A government limits the amount of a product that can be sold in a market.
B)A government sets a minimum or maximum price that can be charged.
C)A government sets a limit on how many inputs can be used in the production process.
D)A government places a regulation on how many consumers are allowed in a market.

Question

Quizplus · Accepted Answer

A quota is a restriction on the quantity of a product that can be produced, imported or sold. Therefore, option A, where the government is limiting the amount of a product that can be sold, is an example of a quota. The other options are not examples of quotas - option B is an example of a price ceiling or floor, option C is an example of a regulation on inputs and option D is not a valid example of any type of economic policy.

Which of the Following Is an Example of a Quota