Which of the Following Statements About Quotas Is Correct

question 15

Multiple Choice

Which of the following statements about quotas is correct?

• A)They benefit domestic consumers through lower prices.
• B)They benefit domestic producers through higher prices.
• C)They raise world output.
• D)They cause outward shifts in the domestic and foreign production possibilities frontiers.
• E)They benefit domestic producers through increased competition that stimulates innovation.

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Definitions:

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Liquidity

The simplicity of converting an asset or security into cash without impacting its market value.

P/E Ratio

The price-to-earnings ratio, a valuation metric comparing the current share price of a company to its per-share earnings.