Related to the Economics in Practice on Page 667: When

question 132

Multiple Choice

Related to the Economics in Practice on page 667: When a country lifts a quota, imports to that country generally ________ and the price of the affected product in that country generally ________.

• A) increase; rises
• B) increase; falls
• C) decrease; rises
• D) decrease; falls

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Definitions:

Safety Stock

Inventory kept on hand to protect against stockouts caused by fluctuations in demand or supply chain disruptions.

Lead Time

Lead time is the amount of time that elapses from the start of a process until its completion, important in manufacturing and supply chain management.

Safety Stock

Extra inventory kept on hand to prevent stockouts caused by variations in supply and demand.

Lead Time

The time interval between the initiation and completion of a process, such as the period from placing an order to its delivery.