Rice Imports to a Nation Under a Quota Limit of 8,500

question 27

Multiple Choice

Rice imports to a nation under a quota limit of 8,500 tons are charged a tariff of 15 percent.Imports of rice above the quota limit are charged a tariff of 60 percent.This is an example of a(n) ________.

• A) export quota
• B) voluntary export restraint
• C) ad valorem tariff
• D) tariff-quota

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Definitions:

Virtually Unlimited

A term used to describe a resource or supply that is so abundant it appears to be almost without limit.

Scarcity and Choice

Refers to the fundamental economic problem of having unlimited human wants in a world of limited resources, leading to the necessity of making choices on how to allocate resources efficiently.

Economic Decision

A choice made by individuals, businesses, or governments that involves the allocation of resources, considering the costs and benefits to optimize outcomes.

Surpluses and Shortages

Conditions where the quantity of a good or service exceeds or falls short of the quantity demanded at a given price.