Which of the following situations will arise in the domestic market following the imposition of an import quota?
A. imports increase, domestic production decreases, prices decrease
B. imports decrease, domestic production increases, prices decrease
C. imports decrease, domestic production decreases, prices increase
D. imports decrease, domestic production increases, prices increase
Answer: D
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Which of the following goods is an example of a good that is nonexcludable but not nonrivalrous?
a. National defense. b. A fishing lake. c. A lighthouse. d. A radio broadcast.
In a command economy, the ultimate decision about what to produce is left to
A) buyers. B) the government. C) sellers. D) households.
A surplus is a result of equilibrium price being below the current price.
a. true b. false
An increase in the reserve requirement will lead to increased net exports.
Answer the following statement true (T) or false (F)