An Effective Import Quota Is One That

question 120

Multiple Choice

An effective import quota is one that

• A)reduces imports to zero
• B)increases exports
• C)reduces the price of an imported good below the world price
• D)limits imports to less than what would be imported under free trade
• E)reduces demand for a good to zero

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Definitions:

Limitations

Restrictions or caps set on actions such as the time within which legal proceedings can be initiated, known as statutes of limitations.

Interstate Commerce

Commerce conducted between two or more states in the United States, regulated by federal law to ensure free and fair trade.

Intrastate Commerce

Commercial transactions or transportation occurring within the borders of a single state, not involving or crossing state lines.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, foreign nations, and Indian tribes, forming the basis for much federal legislation on economic regulation.