When Governments Specify the Maximum Amount of a Good That

question 118

Multiple Choice

When governments specify the maximum amount of a good that may be imported in a given period of time,they are establishing a

• A)quota.
• B)tax.
• C)tariff.
• D)dynamic tariff.
• E)dumping limit.

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Definitions:

Per Capita Real GDP

This is a measure of the average economic output per person, adjusted for inflation, in a specific area.

GDP Deflator

A measure for evaluating the price index of all fresh, domestically produced, final goods and services in an economy.

Population

The total number of people inhabiting a particular territory or geographic area.

GDP Deflator

An economic metric that converts the money-value measure of GDP to a measure of real GDP by accounting for inflation or deflation.