An Effective Import Quota Is One That

question 120

Multiple Choice

An effective import quota is one that

• A)reduces imports to zero
• B)increases exports
• C)reduces the price of an imported good below the world price
• D)limits imports to less than what would be imported under free trade
• E)reduces demand for a good to zero

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Definitions:

Minimum Wage

The lowest legal salary that employers can pay workers, set by government laws to ensure a minimum standard of living for employees.

Money Supply Growth Rate

The rate at which the amount of money available in an economy is growing, influencing inflation and economic stability.

Phillips Curve

A concept suggesting an inverse relationship between the rate of inflation and the rate of unemployment within an economy.

Desired Expenditures

The amount of spending households, firms, and the government wish to make, usually influenced by economic conditions and policies.