If the US Put an Import Quota on Clothes Dryers, It Would

question 110

Multiple Choice

If the U.S. put an import quota on clothes dryers, it would

• A) raise U.S. net exports of clothes dryers and raise net exports of other U.S. goods.
• B) raise U.S. net exports of clothes dryers and lower net exports of other U.S. goods.
• C) lower U.S. net exports of clothes dryers and raise net exports of other U.S. goods.
• D) lower U.S. net exports of clothes dryers and lower net exports of other U.S. goods.

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Definitions:

Efficiency Wages

A higher wage paid by employers to increase worker productivity and loyalty, reducing turnover and shirking.

Substitution Effect

The change in quantity demanded of a good due to a change in its price, causing consumers to substitute it with other similar goods.

Labor Supplied

Refers to the total hours that workers are willing and able to work at a given wage rate, in a given time period.

Income Effect

Describes how a change in an individual's income affects their purchasing decisions.