An Effective Import Quota Is One That

question 120

Multiple Choice

An effective import quota is one that

• A)reduces imports to zero
• B)increases exports
• C)reduces the price of an imported good below the world price
• D)limits imports to less than what would be imported under free trade
• E)reduces demand for a good to zero

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Definitions:

Standard Quantity

This represents the expected amount of materials or inputs needed to produce a unit of product under normal conditions.

Actual Output

Actual output is the factual quantity of goods or services produced within a specified time frame, representing productivity.

Standard Price

The predetermined cost assigned to materials, labor, or overhead for the purposes of budgeting and variance analysis.

Material Price Variance

The difference between the actual cost of direct materials and the expected (standard) cost, indicating budgetary performance.