Which of These Is an Example of a Quota

question 26

Multiple Choice

Which of these is an example of a quota?

• A) A tax of $2 is placed on every jar of jam that is imported.
• B) European manufacturers of electrical equipment must convert their production processes to meet U.S. standards.
• C) A maximum of 0.7 million pairs of jeans can be imported.
• D) The government pays a $1 million subsidy to a manufacturer to help meet foreign competition.

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Definitions:

Supply Curve

A visual chart that illustrates the connection between a product's price and the amount of the product that suppliers are prepared to offer.

External Benefits

Positive effects experienced by third parties or the society at large due to an economic transaction they were not directly involved in.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.

Subsidizing Consumers

Directing government funds to reduce the price paid by consumers for goods or services, aiming to encourage consumption or support specific sectors.