How Will an Export Quota Imposed by a Large Exporting

question 117

Multiple Choice

How will an export quota imposed by a large exporting country affect the total quantity sold by the country's firms?

• A) It will cause an increase in the total quantity sold by the country's firms.
• B) It will cause a decrease in the total quantity sold by the country's firms.
• C) It will have no effect upon the total quantity sold by the country's firms.
• D) It will have an indeterminate effect on the total quantity sold by the country's firms.

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Definitions:

Liabilities

Debts that a firm owes to others.