Which of the Following Is Not a Regulatory Trade Restriction

question 43

Multiple Choice

Which of the following is not a regulatory trade restriction?

• A) Vegetables prohibited because of excess pesticide usage
• B) Inspections designed to impede trade processes
• C) A limit on the number of imported cars
• D) Leather products banned because of tanning by urine

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Definitions:

Contestable Market

A market in which the costs of entry and exit are low, so a firm risks little by entering. Efficient production and zero economic profits should prevail in a contestable market.

Economic Profits

Profits earned by a firm after accounting for both its explicit and implicit costs, including opportunity costs.

Property Rights

The legal rights to use, control, and derive benefits from a resource, good, or property.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.