An Effective Import Quota

question 38

Multiple Choice

An effective import quota:

• A)lowers the price of imports.
• B)lowers the price of domestic goods competing with imports.
• C)increases the variety of goods available to the consumer.
• D)increases federal revenues.
• E)lowers the quantity of the imported good.

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Definitions:

Government Policy

A course of action or a series of actions taken by a government to address a particular issue, problem, or need in society.

Oil Price Shocks

Sudden and significant changes in the price of oil, which can have wide-reaching economic effects on oil-producing and oil-consuming countries.

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period, at different price levels.

Macropolicy

Policies designed to influence the overall economy, focusing on macroeconomic factors like inflation, unemployment, and economic growth.