Trade Restrictions Based on National Security Concerns

question 144

Multiple Choice

Trade restrictions based on national security concerns:

• A) might be beneficial in certain cases, like vaccinations.
• B) have never been granted in the United States.
• C) have no merit and are always unwise.
• D) give little incentive for industry lobbyists to declare their product vital for national security purposes.

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Definitions:

Competitive Market

A market situation where numerous sellers and buyers exist, and where each has a negligible impact on the market price.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in a market.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services that are supplied matches the amount that is demanded.

Equilibrium Price

The market price at which the quantity demanded of a good equals the quantity supplied, leading to a state of balance in the market.