Import Bans, Import Quotas, Voluntary Export Restraints, and Tariffs on Goods

question 203

Multiple Choice

Import bans, import quotas, voluntary export restraints, and tariffs on goods all:

• A) reduce imports and reduce prices for consumers.
• B) increase imports and raise prices for consumers.
• C) increase imports and reduce prices for consumers.
• D) reduce imports and raise prices for consumers.

Analyze the effects of income distribution on savings and investment in DVCs.

Appreciate the significance of income disparities between IACs and DVCs.

Evaluate the potential of international trade and investment policies to influence economic development.

Discuss the various views on the economic relationships between IACs and DVCs.

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Definitions:

Treasury Stock

Represents the shares that have been issued and subsequently reacquired by the corporation, not yet retired.

Par Common Stock

The face value of a share of stock as stated in the corporate charter.

Cost Method

An accounting method used to value inventory or investments at their original purchase cost.

Treasury Stock

Shares initially offered by a company and then purchased again by that company, lowering the volume of shares that are actively traded on the market.