An Import Quota

question 36

Multiple Choice

An import quota

• A) is a price ceiling imposed on an imported good.
• B) is a price floor imposed on an imported good.
• C) is a supply restriction limiting the quantity of a good that can be imported.
• D) is a legislative requirement stating that firms which import some of their merchandise must hire a certain number of immigrant workers.

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Definitions:

Trade

The exchange of goods or services between parties in return for other goods, services, or money.

Gains From Trade

The benefits that entities receive from the voluntary exchange of goods or services, typically leading to an improvement in overall welfare.

Street Lighting

A service provided, often by local governments, that involves the installation and maintenance of public lighting along streets and in public areas for safety and visibility.

Marginal Benefit

The additional benefit derived from consuming or producing one more unit of a good or service.