One Impact of an Import Quota Is To

question 33

Multiple Choice

One impact of an import quota is to:

• A)increase both domestic production and domestic prices.
• B)increase domestic production and reduces domestic prices.
• C)reduce domestic production and increases domestic prices.
• D)reduce both domestic production and domestic prices.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and entitlement to dividends.

No-par Value

Refers to stocks issued without a nominal or face value, where the market value is determined by investor demand.

Legal Capital

The minimum amount of capital that a company must maintain as required by law, often to protect creditors.

Dividend Rate

The total dividends declared by a company over a period, usually a year, divided by the number of outstanding shares.