Assume That the United States Imposes an Import Quota on Columbian

question 51

Multiple Choice

Assume that the United States imposes an import quota on Columbian coffee.Relative to the equilibrium world price that would prevail in the absence of import quotas,it is likely that the equilibrium price of coffee in the United States will _____ and the equilibrium price of coffee in Columbia will _____.

• A)decrease;remain the same
• B)remain the same;increase
• C)increase;increase
• D)increase;decrease

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Definitions:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Corporate Controllers

Senior financial officers within a corporation responsible for overseeing accounting functions, financial reporting, and internal controls.

Accounting Functions

The systematic process of recording, analyzing, summarizing, and reporting the financial transactions of a business.

Collateral

Assets pledged by a borrower to secure a loan or other credit, ensuring the lender can seize these assets if the borrower fails to repay.