Question

Due to the rising prices of gasoline, Harleen is looking for a car with better gas mileage. She hopes to purchase the new Preo, an imported car using hybrid technology. But Preos are hard to find because the government in Harleen's country has limited the number of them that can be imported each year. Harleen is witnessing the impact of an:

a) Export tariff
b) Import quota
c) Embargo
d) Exchange rate fluctuation

Answer 1

The situation described in the question is an example of an import quota. An import quota is a restriction on the quantity of a specific good that can be imported into a country.

Step-by-step explanation:

The situation described in the question is an example of an import quota. An import quota is a limit set by the government on the quantity of a specific good that can be imported into the country. In this case, Harleen is having difficulty finding the Preo car she wants because the government has imposed a limit on the number of imported Preos allowed each year. This restriction is aimed at controlling the number of imported cars and protecting the domestic automobile industry from foreign competition.