If It Wants to Reduce the Dollars Flowing Out of the Country

question 179

Multiple Choice

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of Japanese cars being imported by imposing a(n)

• A) free trade zone.
• B) GATT.
• C) trade deficit.
• D) balance of trade.
• E) import quota.

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Definitions:

Profits Maximize

The process of adjusting production and operations to achieve the highest possible profit margins.

Restaurant Industry

A sector of the economy that is concerned with the preparation, sale, and service of food and beverages to customers.

Quantity

The amount or number of a material or immaterial good considered as a unit or units.

Economic Profits

Profits after subtracting both explicit and implicit costs from total revenue, representing earnings that exceed the opportunity cost of all resources.