To Be Effective, an Import Quota Must

question 171

Multiple Choice

To be effective, an import quota must

• A)reduce the price and increase the quantity of imports
• B)set the price of the imported good higher than the domestic equilibrium price
• C)restrict imports to less than would be imported under free trade
• D)restrict imports to less than exports in trade with that particular country
• E)be directed at the product of a specific country

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Definitions:

Interest Accrued

The accumulated interest on a loan or bond that has not yet been paid to the lender.

Proceeds of a Note

The total amount of money generated or to be paid out from a promissory note or financial instrument.

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out a journal entry made at the end of the previous accounting period.

Interest Accrued

Interest that has been incurred but not yet paid, representing a liability on the balance sheet until it is paid.