If the US Imposed an Import Quota on Construction Equipment, Then the Then

question 36

Multiple Choice

If the U.S. imposed an import quota on construction equipment, then the sales of U.S. construction equipment producers would

• A)rise and the exports of other U.S. industries would rise.
• B)rise and the exports of other U.S. industries would fall.
• C)fall and the exports of other U.S. industries would rise.
• D)fall and the exports of other U.S. industries would fall.

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Definitions:

Negotiated Transfer Price

A transfer price agreed upon by the selling and buying divisions within the same company.

External Market Price

The price at which goods or services are bought and sold outside of a company, determined by the supply and demand in the wider market.

Savings

The portion of income not spent on current expenditures or taxes, often set aside for future use or investment.

Excess Capacity

A scenario where a company's production facilities are capable of producing more than is needed to meet the demand.