The Best Example of a Quota from the List Below

question 58

Multiple Choice

The best example of a quota from the list below is

• A)a subsidy from the government to domestic manufacturers of tires to enable them to compete more effectively with foreign producers
• B)a limit on the quantity of tires that can be imported from a foreign country
• C)a 40% fee imposed on all imported tires
• D)a tax placed on all tires sold in the domestic market to help offset the impact of lost jobs in the domestic tire industry

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Definitions:

Unit Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor, calculated on a per unit basis.

Static Budget

A financial plan that does not change or adjust over the period, even when there are significant changes in the levels of activity.

Variable Costs

Expenses that change in proportion to the level of activity or production volume.

Static Budget

A budget that does not change or adapt over time, based on the assumption of a fixed level of activity.