Which of the following statements is true about import quotas?
A) Import quotas benefit domestic producers by limiting import competition.
B) If a domestic industry lacks the capacity to meet demand, an import quota can raise the prices for domestically produced good but not the imported good.
C) Under an import quota, a lower tariff rate is applied to imports within the quota than those over the quota.
D) Import quotas benefit consumers by decreasing the domestic price of an imported good.
E) An import quota helps a foreign producer in gaining a competitive advantage in the markets of the country which imposes the quota.
Correct Answer:
Verified
Q15: The strategic trade policy arguments of the
Q34: One of the reasons for the trend
Q36: Which of the following groups would benefit
Q38: Tariff rates on agricultural products are generally
Q39: The infant industry argument is the oldest
Q41: _ take many forms including cash grants,low-interest
Q44: Which of the following statements with regard
Q45: Which of the following terms refers to
Q46: Tariffs cause damage to _ as they
Q47: A(n)_ is a quota on trade imposed
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents