An Import Quota Specifies the

question 76

Multiple Choice

An import quota specifies the

• A) highest price that can be charged for an imported good.
• B) per unit tax that must be paid on an imported good.
• C) maximum quantity of a good that may be imported during a specified time period.
• D) minimum quantity of a good that must be exported during a specified time period.

---

Definitions:

New Firms

New firms are companies that have recently entered a market, bringing fresh competition and innovation to the industry.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Monopolistic Competition

describes a market structure where many firms sell products that are similar but not identical, leading to competition.

Allocative Efficiency

A state of the economy where resources are allocated in a way that maximizes the overall welfare or utility of consumers.