Which of the Following Is True About Import Quotas and Tariffs

question 74

Multiple Choice

Which of the following is true about import quotas and tariffs?

• A) They promote global business across different continents.
• B) They help in removing the roadblocks of multinational firms.
• C) They enable nations with political uncertainties to go overseas.
• D) They are usually established to promote self-sufficiency.

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Definitions:

Deflation

A decrease in the general price level of goods and services, often indicating an economic slowdown.

Inflation

The velocity at which the aggregate price level for goods and services elevates, thereby reducing purchasing capability.

Nominal Interest Rate

The interest rate before adjustments for inflation. It is the rate quoted on loans and deposits.

Inflation Rate

The Inflation Rate is a measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, usually expressed as a percentage.