Which of the Following Is an Example of a Quota

question 37

Multiple Choice

Which of the following 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:

Business Monopoly

A market structure characterized by a single seller or firm dominating the entire market, often leading to less competition and higher prices.

Price Equal

A situation where the market price stabilizes, reaching a point where supply equals demand.

Marginal Cost

The extra financial burden of manufacturing one more unit of a product or service.

Natural Monopolies

A situation where a single firm can supply a product or service to an entire market at a lower cost than two or more firms, making competition impractical.