Which of the Following Situations Will Arise in the Domestic

question 65

Multiple Choice

Which of the following situations will arise in the domestic market following the removal of an import quota?

• A) imports increase, domestic production increases, prices increase
• B) imports decrease, domestic production increases, prices decrease
• C) imports decrease, domestic production decreases, prices increase
• D) imports increase, domestic production decreases, prices decrease

---

Definitions:

Rate of Return

The profit or shortfall on an investment over a predetermined period, expressed as a proportion of the investment's initial outlay.

Dividend Increase

An action by a corporation to raise the amount of dividends paid to its shareholders.

Constant Annual Dividend

A fixed dividend amount paid to shareholders every year, without variation.

Rate of Return

Change in an investment's value within a predetermined interval, indicated as a percent of the investment's initial cost.