Exhibit 19-8 -If the Country in Exhibit 19-8 Is Initially Trading Without

question 127

Multiple Choice

Exhibit 19-8
-If the country in Exhibit 19-8 is initially trading without restrictions at a world price of $2.00 and an import quota of 50 units per month is enacted,

• A) imports will not change
• B) imports will increase from 25 to 50 units per month
• C) domestic production will increase from 100 to 175 units per month
• D) domestic production will increase from 100 to 125 units per month
• E) domestic production will increase from 100 to 150 units per month

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Definitions:

Cubans

People originating from Cuba or of Cuban descent.

Cuban Government

The governing body of Cuba, characterized by a one-party socialist system under the Communist Party, focusing on centralized planning and state control.

Native Americans

The indigenous peoples of the United States, including both the individuals and the cultures that predate European colonization.

European Diseases

Infectious diseases brought to the Americas and other regions by European explorers and colonizers, leading to significant indigenous population declines.