An Import Quota Is a Limit on the

question 374

Multiple Choice

An import quota is a limit on the

• A) number of foreign workers allowed to work in a country.
• B) number of container ships allowed to enter the territorial waters of the United States.
• C) value of low-priced foreign goods that are allowed to be imported into the United States.
• D) amount of a product that may be imported.

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Definitions:

Market Prices

The current prices at which goods and services are bought and sold in the marketplace, determined by the forces of supply and demand.

Influence

The ability to impact the nature, growth, or actions of an individual or object, or the impact that is made.

Market Failure

A scenario in which the distribution of goods and services through an unregulated market fails to achieve efficiency, typically resulting in a decrease in overall social welfare.

Economies

The system by which goods and services are produced, distributed, and consumed within a particular area or community.