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Scenario: Badland Joins the World

Question 123

Multiple Choice

Scenario: Badland Joins the World
Badland, a former totalitarian economy and pariah state, is taking steps toward a free market economy. The government wants to encourage trade but also wants to find a balance where local businesses and industries are not destroyed.
-The government may want to impose an import quota for which of the following reasons?


A) Maintain adequate supplies of a product in the home market
B) Force the companies of other nations to compete against one another
C) Restrict supply on world markets
D) All of the above

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