The Effect of an Import Quota Is to

question 170

Multiple Choice

The effect of an import quota is to

• A)raise the price and reduce the quantity of imports.
• B)raise the price and the quantity of imports.
• C)lower the price and the quantity of imports.
• D)raise the quantity and reduce the price of imports.

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Definitions:

Simple Rate

A straightforward percentage or interest rate, typically referring to finance or investment, without compounding over time.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding the costs directly related to producing goods or services.

Sales Revenues

The total amount of income received by a company from its sales of goods or services, before any expenses are subtracted.

Useful Life

The estimated duration of time a fixed asset is expected to be usable for its intended purpose.