An Import Quota Is a Tax on Imports

question 120

True/False

An import quota is a tax on imports.

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Definitions:

Inventory

The complete inventory of products and materials that a business keeps for the aim of selling or using in manufacturing.

Quick Ratio

A liquidity metric that measures a company's ability to cover its short-term obligations with its most liquid assets, excluding inventory.

Quick Assets

Assets that can be quickly converted into cash without losing value, including cash, marketable securities, and accounts receivable.

Cash Equivalents

Brief-term investments with high liquidity, capable of being readily turned into fixed cash sums, and facing a negligible risk of value shifts.