Which of the following is the best example of a quota?
a. a tax placed on all small cars sold in the domestic market
b. a limit imposed on the number of men's suits that can be imported from a foreign country
c. a subsidy from the U.S. government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits
d. a $100-per-car fee imposed on all small imported cars
b
You might also like to view...
The income-expenditure model is best used for short-run analysis of economic fluctuations
Indicate whether the statement is true or false
A function of government is to regulate "natural monopolies." Explain what is a natural monopoly and why it requires government regulation
What will be an ideal response?
The Big Mac index is a measure of how well the purchasing power parity theory works
a. True b. False Indicate whether the statement is true or false
A variable factor of production:
A. plays no role in the law of diminishing marginal returns. B. is variable only in the short run. C. is fixed in the long run but variable in the short run. D. is variable in both the short run and the long run.