Which of the following is the best example of a quota?
A) a tax placed on all small cars sold in the domestic market
B) a limit imposed on the number of men's suits that can be imported from a foreign country
C) a subsidy from the American government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits
D) a $100-per-car fee imposed on all small cars imported

Question

Quizplus · Accepted Answer

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a particular time period. Choice B, which describes a limit imposed on the number of men's suits that can be imported from a foreign country, is the best example of a quota. Choices A, C, and D describe a tax, a subsidy, and a fee, respectively, which are different from a quota.

Which of the Following Is the Best Example of a Quota