Quotas That Limit the Quantity of Imports of a Foreign

question 21

Multiple Choice

Quotas that limit the quantity of imports of a foreign good provide an incentive for foreign suppliers to:
I.Provide higher quality goods.
II.Seek more open markets elsewhere.
III.Lower prices to be more competitive.
IV.Stop all trade with the country imposing the quotas.
Which of the above statements are true?

• A) I and II.
• B) I and III.
• C) II and IV.
• D) III only.

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