An Import Quota

question 183

Multiple Choice

An import quota

• A) limits the amount of a good that can be imported, thus decreasing prices.
• B) limits the amount of a good that can be imported, thus increasing prices.
• C) increases the amount of a good imported, thus decreasing prices.
• D) increases the amount of a good imported, thus increasing prices.

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Definitions:

General Equilibrium

This is an economic concept referring to the condition where all markets in an economy are in simultaneous equilibrium, with supply meeting demand in each market.

Consumer Preference

Individual choices and priorities when selecting from a range of products or services, influenced by tastes, attitudes, and other factors.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product demanded, clearing the market.

Structural Approaches

Structural approaches refer to methods or strategies that focus on organizational design, hierarchy, and formal systems as means to achieve efficiency, coordination, and effectiveness.