Both Import Quotas and VERs Benefit _____ by Limiting Import

question 36

Multiple Choice

Both import quotas and VERs benefit _____ by limiting import competition,but they result in higher prices,which hurt _____.

• A)domestic producers;consumers
• B)governments;domestic producers
• C)importers;foreign producers
• D)consumers;governments

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Definitions:

Price Floor

a government-imposed limit on how low a price can be charged for a good or service, intended to prevent prices from falling too low.

Black Markets

Illicit markets that operate outside of authorized legal frameworks, often involving the trading of banned or restricted goods and services.

Price Controls

Government-imposed limitations on the prices that can be charged for goods and services in a market.

Illegal Exchanges

Transactions that violate the law, such as the trade of banned substances or services.