An Import Quota Does Which of the Following

question 23

Multiple Choice

An import quota does which of the following?

• A)​decreases the price of the imported goods to consumers
• B)​increases the price of the domestic goods to consumers
• C)​increases the domestic quantity demanded.
• D)​both (a) and (c)

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Definitions:

Cash Dividend

Cash payments made by corporations to their owners from profits earned.

Authorized Shares

The highest quantity of shares that a company can legally distribute, as stated in its charter.

Noncumulative

Pertaining to preferred stock dividends, where dividends not paid in one period do not accumulate and are not required to be paid in future periods.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with fixed dividends.