Concerning the Restrictive Impact of an Import Quota, Assume There

question 100

Multiple Choice

Concerning the restrictive impact of an import quota, assume there occurs an increase in the domestic demand for the import product.As long as the quota falls short of what would be imported under free market conditions, the economy's adjustment to the increase in demand would take the form of

• A) a decrease in domestic production of the import good.
• B) an increase in the amount of the good being imported.
• C) an increase in the domestic price of the import good.
• D) a decrease in domestic consumption of the import good.

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Definitions:

Appalachian Mountains

A mountain range in Eastern North America extending from the island of Newfoundland in Canada to central Alabama in the United States, offering significant natural and cultural resources.

New England

A region in the northeastern United States, comprising six states (Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, and Connecticut), known for its colonial history.

Slaveholders

Individuals or entities that owned slaves, particularly prevalent in historical contexts such as pre-Civil War United States.

European Migrants

Individuals from European countries who moved to other parts of the world, often for economic opportunities or to escape conflicts.