The imposition of a quota on an imported good
A) shifts the demand curve down for the good.
B) shifts the supply curve up for the good.
C) Both A and B.
D) Not enough information to determine.
B
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The infant industry argument has a normative economic basis because
A) clearly, all industries need to be protected. B) protected industries are selected on a factual basis. C) the government must decide which industries should be protected. D) political corruption is the only deciding factor.
When one country "dumps" some of its products in another country, it
A) increases the aggregate level of employment in the importing country, thereby depressing that nation's market wages. B) also exports new technology to the importing nation and thereby indirectly boosts the importing nation's real GDP. C) sells its products abroad at a price lower than the price in the home market or lower than the cost of production. D) also exports pollution-causing technologies and thereby creates environmental hazards in the receiving country.