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

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 A, which describes a limit on the number of sport utility vehicles that Jordan can import from Japan, is a direct example of a quota because it restricts the quantity of a specific type of import.

Which of the Following Is the Best Example of a Quota