Which of the Following Is the Best Example of a Quota

question 126

Multiple Choice

Which of the following is the best example of a quota?

• A)A limit imposed on the number of sport utility vehicles that Australia can import from Japan
• B)A subsidy granted by the government to domestic garment manufacturers so they can compete more effectively with foreign garment manufacturers
• C)A tax placed on all sport utility vehicles sold in the domestic market
• D)A $5000 per-car fee imposed on all sport utility vehicles imported into Australia

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Definitions:

Security Market Line

A representation in finance that shows the relationship between risk and return of a market.

Beta Coefficient

A measure of a stock's volatility in relation to the overall market, indicating its level of risk compared to the market average.

Expected Return

The anticipated profit or loss from an investment, considering all possible outcomes and their probabilities.

Systematic Risks

Risks that impact the entire market or economy, often unavoidable by diversification.