Which of the Following Is an Example of a Quota

question 105

Multiple Choice

Which of the following is an example of a quota?

• A) Limit on the total number of Hondas that can be imported from Japan
• B) Regulation specifying that each imported Honda must meet certain emission exhaust guidelines
• C) Tax of $500 on each Honda imported from Japan
• D) Tax of 10% of the value of each Honda imported from Japan

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Definitions:

Profit Rate

The ratio of profits earned to the amount of capital invested over a given period, indicating the efficiency of using capital in production.

Loan Syndicates

Groups of lenders or financial institutions that come together to provide large loans to a single borrower, spreading the risk among them.

Inventory Investment

The change in the stock of unsold goods and materials held by a business over a period of time, affecting the overall investment levels in the economy.

Level of Inventory

The quantity of goods that a company has in stock at a specific time.