How Must an Import Quota Function in Order to Be

question 111

Multiple Choice

How must an import quota function in order to be effective?  

• A) It must reduce the price and increase the quantity of imports. 
• B) It must set the price of the imported good higher than the domestic equilibrium price. 
• C) It must restrict imports to a lower quantity than would be imported under free trade. 
• D) It must restrict imports to less than exports in trade with that particular country.

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Definitions:

Tissue Inflammation

A biological response to harmful stimuli, characterized by redness, swelling, pain, and heat in affected tissues.

Psychological Trauma

Emotional or psychological injury resulting from an extremely stressful or disturbing event.

Stress Hormones

Hormones, such as cortisol, released in response to stress that prepare the body to face a threat or flee to safety.

Expressing Anger

The process of communicating feelings of displeasure or irritation in response to perceived wrongs or frustrations.