A Restriction of Imports That Is Accomplished by a Quota

question 137

Multiple Choice

A restriction of imports that is accomplished by a quota normally

• A)can be accomplished also by a tariff.
• B)cannot be replicated exactly by imposing a tariff.
• C)can be accomplished also by an export subsidy.
• D)can be accomplished also by negotiations within GATT.

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Definitions:

Equilibrium Quantity

The quantity of goods or services sold where the supply and demand curves intersect, indicating a balance between supply and demand.

Trade

The exchange of goods or services between individuals, firms, or countries.

Consumer Surplus

The discrepancy between what consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade volumes and protect domestic industries.