Which of the Following Is the Best Example of a Quota

question 66

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:

Separating Equilibrium

A situation in game theory where different types of players (usually with different information) choose different strategies, allowing their types to be inferred by others.

Dull Lectures

Lectures that are uninteresting and fail to engage the audience or students.

Equilibrium

A state in a market where supply equals demand, and there is no tendency for the price or quantity to change.

Lemons

In economic terms, 'lemons' often refer to products of significantly lesser quality sold to consumers who have limited information about their true nature, especially used in the context of the used car market.