An import quota on a product protects domestic industries by
a. reducing the foreign supply to the domestic market and, thereby, raising the domestic price.
b. increasing the foreign supply to the domestic market and, thereby, lowering the domestic price.
c. increasing the domestic demand for the product and, thereby, increasing its price.
d. providing the incentive for domestic producers to improve the efficiency of their operation and, thereby, reduce their per-unit costs of production.
A
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All of the following are examples of off-balance sheet activities that generate fee income for banks EXCEPT
A) foreign exchange trades. B) guaranteeing debt securities. C) back-up lines of credit. D) selling negotiable CDs.
Firms that price discriminate cannot capture consumer surplus
Indicate whether the statement is true or false
A person who seeks to earn profits by finding ways to organize factors of production is called a(n):
A) foreman B) finance capitalist. C) entrepreneur. D) manager.
Which statement is true?
A. Most blacks live in poor neighborhoods. B. Young black women are confronting a shrinking pool of "marriageable" (that is economically stable) men. C. It is clear that the basic cause of poverty in this country is public assistance. D. The United States has the smallest proportion of people living in poverty in the world.