Which of the Following Is True of a Quota

question 23

Multiple Choice

Which of the following is true of a quota:

• A)Imposition of a quota causes domestic prices to fall below world prices.
• B)Imposition of a quota by a country causes the world price of the good imported by this country to rise.
• C)A quota is a quantitative restriction on imports.
• D)A quota is always more efficient than a tariff.

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Definitions:

Regressive

A term especially used in taxation to describe a situation where the tax rate decreases as the amount subject to taxation increases.

Progressive

A political and social philosophy advocating for reforms and changes that aim to address inequality and improve the social welfare of the population.

National Debt

The complete monetary sum borrowed by a nation's executive body through various sources.

Federal Government Spending

The total expenses incurred by the national government on various services, infrastructure, debt interest, and public welfare programs.