When the President Decides to Impose Export Controls for National

question 2

Multiple Choice

When the president decides to impose export controls for national security or foreign policy reasons,the following businesses may be adversely affected:

• A) farmers whose crops are in short supply.
• B) businesses who cooperate with Arab nations in boycotting Israel.
• C) subsidiaries of U.S. companies having contracts with nations targeted by U.S. foreign policy.
• D) All of these are correct.

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Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a product.

Raise Price

An action taken by a seller to increase the selling price of a product or service, often in response to higher costs or in an attempt to increase profits.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the excess that remains after a firm has paid all costs.

Pure Monopoly

A market structure where a single company is the sole producer of a particular good or service, facing no competition.