Which of the following is an example of a quota?
A)The United States sets a minimum or maximum price that can be charged for baked goods.
B)The United States limits the number of immigrants allowed to enter the country.
C)The United States sets a limit on how many firms can operate in the market for cell phones.
D)The United States imposes a regulation requiring consumers to be licensed before buying pens.

Question

Quizplus · Accepted Answer

A quota is a limit on the quantity of a good or service that can be produced, sold, or imported/exported. Therefore, the example of the United States limiting the number of immigrants allowed to enter the country is an example of a quota. The other answer choices are examples of other forms of government intervention in the market, such as price controls, entry regulations, and licensing requirements.

Which of the Following Is an Example of a Quota