An effective import quota will
a. increase the revenue received by the exporting nation
b. eliminate all incentives for trade between nations
c. reduce the quantity demanded of the imported good
d. lead to a lower domestic price
e. lead to a higher price in the exporting nation
C
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According to Hughes and Cain (2011), American economic history is the story of economic growth. Economic growth
(a) necessarily means an improvement in the quality of life for all individuals. (b) does not necessarily measure an improvement in the quality of life; it merely indicates the potential for improvement. (c) as conventionally measured considers an employed person living in the pollution and congestion of modern Tokyo to be "worse off" than a sun-tanned artist watching another glorious sunset on the beach in Tahiti. (d) is measured by the increases in total output of goods and services less any environmental destruction that occurs in the process of production.
Which of the following does not represent real GDP?
A) GDP in current dollars B) GDP in terms of goods C) GDP in base year dollars D) GDP in constant dollars