If the U.S. government imposed a quota on toy imports, then
A)imports and exports would both fall.
B)imports would fall and exports would rise.
C)imports would rise and exports would fall.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

A quota on toy imports would reduce the quantity of toys imported into the U.S., leading to a fall in imports. Since the U.S. does not export toys, there would be no impact on exports.

If the US Government Imposed a Quota on Toy Imports, Then