A Limit on the Quantity of a Good Produced Abroad

question 124

Multiple Choice

A limit on the quantity of a good produced abroad that can be purchased domestically is called a(n)

• A)tariff.
• B)excise tax.
• C)import quota.
• D)None of the above is correct.

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Definitions:

Price Stability

A situation in an economy where prices in general do not change significantly over time, minimizing uncertainty and conducive to economic growth.

Oligopolies

Market structures characterized by a small number of firms that have significant market power, which can influence prices and output levels.

Cartels

Formal agreements among competing firms to control prices, production, and distribution of goods, often to restrict competition and increase profits illegally.

Collusive Arrangements

Agreements between firms to control prices or exclude entry of a new competitor in the market, often in violation of antitrust laws.