An Import Quota Is

question 59

Multiple Choice

An import quota is

• A)a tariff that is a fixed percentage of the price of a good.
• B)a tariff that is a fixed dollar amount per unit of a good.
• C)an agreed upon price for a good to be imported at a specified future date.
• D)a restriction that specifies the maximum quantity of a good that may be imported in a given time period.
• E)the same as an export subsidy.

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Definitions:

Short-Run Production Function

A mathematical representation of the relationship between input changes and output levels in a production process, considering some inputs as fixed.

Total Cost Function

The total cost function describes the total cost of production as a function of the quantity of output, including both fixed and variable costs.

Variable Factor

In economics, it refers to any input whose quantity can be changed in the short term to affect production levels.

Increasing Returns to Scale

A situation in which output increases by a greater proportion than the increase in inputs used.