Which of the following is an example of an import quota? The United States . A. puts a 10 percent tax on auto part imports from China B. limits the quantity of textiles that U. S. producers may sell to Mexico C. limits the quantity of sugar that farmers are permitted to produce D. limits the quantity of auto parts the U. S. car makers may buy from China

The correct answer is letter "D": limits the quantity of auto parts the U.S. car makers may buy from China.

Explanation:

Quotas reflect the limits on the number of goods that can be imported into or exported from a nation over a certain period. Countries make use of quotas to protect domestic industries. By imposing a cap on imported foreign goods it limits the supply of those goods and keeps prices up so that domestic businesses can still sell their goods at a higher price.

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