Question

Economics Semester Exam
28 of 3128 of 31 Items




Question
Which of the following will likely occur if Israel imposes a quota on automobiles imported from the United States?(1 point)
Responses

Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture fewer automobiles.
Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture fewer automobiles.

Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.
Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.

Israeli consumers will purchase more automobiles, and Israeli producers will manufacture more automobiles.
Israeli consumers will purchase more automobiles, and Israeli producers will manufacture more automobiles.

Israeli consumers will purchase more automobiles, and Israeli producers will manufacture fewer automobiles.

Answer 1

If Israel imposes a quota on automobiles imported from the United States, it restricts the number of cars that can be imported. This typically leads to a decrease in the availability of foreign automobiles in the market. As a result:

- Israeli consumers will have fewer options and may end up purchasing fewer automobiles overall, due to the higher prices and limited availability caused by the quota.
- Israeli producers, on the other hand, may increase their production to fill the gap left by the reduced imports, as they would face less competition from foreign automobile manufacturers.

Based on this analysis, the correct response would be:

**Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.**