Which of the Following Statements About Quotas Is FALSE? Quotas

question 53

Multiple Choice

Which of the following statements about quotas is FALSE? Quotas

• A)Reduce the availability of imported goods for consumers
• B)Reduce the profits of foreign producers
• C)Increase the price of imports
• D)Increase the price of domestically produced substitutes
• E)Are used as a means to restrict international trade

---

Definitions:

Transactions

Transactions refer to the exchange of goods, services, or funds between two or more parties, forming the basis of business activities and financial operations.

Investee

A company or entity in which an investor holds a significant interest, but not majority control.

Gross Profit

The financial metric obtained by deducting the cost of goods sold from revenue, indicating the efficiency of a company in managing its labor and supplies in the production process.

Intra-entity Sales

Transactions that occur between divisions or subsidiaries within the same parent company, affecting consolidated financial statements.