Which of the Following Situations Will Arise in the Domestic

question 206

Multiple Choice

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

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

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Definitions:

Innocent Landowners

Individuals who own property without knowledge of any environmental contaminations or violations present on the land.

Toxic Substances Control Act

A United States law, enacted in 1976, designed to regulate the introduction of new or previously existing chemicals.

Manufacture

The process of converting raw materials or components into finished goods through the use of labor, machinery, tools, and chemical or biological processing.

New Chemicals

Substances that have been recently developed or discovered and have not been previously identified or used in particular applications or industries.