Which of the Following Situations Will Arise in the Domestic

question 37

Multiple Choice

Which of the following situations will arise in the domestic market following the removal of an import quota?

• A) imports increase, domestic production increases, prices increase
• B) imports increase, domestic production decreases, prices decrease
• C) imports decrease, domestic production increases, prices decrease
• D) imports decrease, domestic production decreases, prices increase

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Definitions:

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Pecuniary Interest

A financial interest, or the prospect of financial gain or loss, that may influence an individual's decisions or actions.

Insurable Interest

A financial or economic stake in the life or property insured, allowing an individual or entity to purchase insurance on the item or person.

Property

An area or thing owned by someone, which includes tangible assets like real estate and personal property, as well as intangible rights.