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:

Quantity Demanded

The overall quantity of a good or service buyers intend and can afford to acquire at an established price.

Substitutes

Products or services that can be used in place of each other, offering consumers choices in the marketplace.

Negative Relationship

A situation or condition in which an increase in one variable leads to a decrease in another variable.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price over a specific time period.