A Government-Imposed Restriction on the Quantity of a Specific Good

question 139

Multiple Choice

A government-imposed restriction on the quantity of a specific good that another country is allowed to sell in the U.S. is

• A) a regional trade bloc.
• B) an import quota.
• C) a voluntary import expansion.
• D) a voluntary restraint agreement.

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Definitions:

Call

An option contract that gives the holder the right, but not the obligation, to buy a security at a specified price within a specified time period.

Value

The worth of an asset or service, determined by factors such as market demand, utility, and costs of production.

Black-Scholes

A mathematical model used to price European style options, estimating the variation over time of financial instruments.

European Options

Derivative securities that can only be exercised at the expiration date, not before, contrasting with American options which can be exercised at any point before expiration.