If SA Imposes a Quota on the Importing of Clothing

question 42

Multiple Choice

If SA imposes a quota on the importing of clothing produced in China, so reducing SA imports of clothing, which of the following is true regarding SA net exports?

• A)Net exports will rise.
• B)None of these answers.
• C)Net exports will fall.
• D)Net exports will remain unchanged.

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Definitions:

Cost

The amount of money or resources expended to acquire an asset, produce a product, or provide a service.

Markup Percent

The additional percentage on the base cost of merchandise to accommodate for overhead and yield profit.

Selling Price

The amount of money for which a product or service is sold to the customer.

Cost

The amount of money required to purchase, produce, or maintain something.