One Form of Import Barrier Is an Import Quota

question 87

Multiple Choice

One form of import barrier is an import quota.What is it?

• A)a limit on the quantity of a certain import
• B)a tax on the value of an import or the imported quantity of a good
• C)a health or safety precaution affecting goods that may cause long­term harm to humans or animals
• D)a bureaucratic rule that can be overridden by the Secretary for International Trade

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Definitions:

Shut Down

The process of ceasing operations, often temporarily, due to various reasons like lack of demand, financial trouble, or external circumstances.

Diminishing Returns

The principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.

Negative Returns

A situation in which a business or investment loses more money than it earns or generates in revenue.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as materials and labor.