Concerning the Restrictive Impact of an Import Quota,assume There Occurs

question 60

Multiple Choice

Concerning the restrictive impact of an import quota,assume there occurs an increase in the domestic demand for the import product.As long as the quota falls short of what would be imported under free market conditions,the economy's adjustment to the increase in demand would take the form of:

• A) A decrease in domestic production of the import good
• B) An increase in the amount of the good being imported
• C) An increase in the domestic price of the import good
• D) A decrease in domestic consumption of the import good

---

Definitions:

Obligations

Legal or financial duties that one party owes another, such as debt repayment or service delivery.

Operating Cycle

The time it takes for a company to make an initial outlay of cash to produce goods or services and then receive cash back from selling these goods or services.

Accounting Cycle

The sequence of steps followed in the accounting process to record and summarize financial transactions throughout a period and prepare financial statements.

Journalizing Transactions

The process of recording business transactions in the journal as part of the accounting process.