Which of the Following Identifies a Difference Between a Boycott

question 26

Multiple Choice

Which of the following identifies a difference between a boycott and a quota?

• A) A boycott sets a limit on the amount of goods entering a country,whereas a quota is a tax levied on goods entering a country.
• B) A boycott is the revenue received from international trade,whereas a quota is the revenue received from domestic trade.
• C) A boycott is used to include all foreign competition,whereas a quota is used by governments to exclude companies from countries with which they have a political dispute.
• D) A boycott is the exclusion of all products from certain countries or companies,whereas a quota is a means of protection from foreign competition.

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the net trade of goods and services with foreign countries.

Price Level

The price level is an index that measures the average prices of goods and services across an economy, indicative of inflation or deflation.

Aggregate Demand Curve

A curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level.

Marginal Propensity

The additional amount that consumers are likely to spend out of an additional unit of income.