The correct option for defining the import quota.
Answer to Problem 4MCQ
Option c is correct.
Explanation of Solution
Explanation for the correct option:
c.
Import quota refers to a type of restriction where countries are defined to import a certain percentage of quantity not beyond that. In other words, it states the maximum level of quantity that can be imported. Therefore, option c is correct.
Explanation for incorrect options:
a.
Import quota defines the maximum quantity of goods and services rather than the minimum quantity. Therefore, option a is the incorrect answer.
b.
Minimum quantity that can be produced in one year is not referred to as import quota. Therefore, option b is incorrect.
d.
Import quota does not set the limit for the manufacturer were beyond a certain level quantity of goods and services cannot be produced. Therefore, option d is incorrect.
e.
Quota defines the number of goods and services rather than their price. Therefore, option e is incorrect.
International trade: International trade is an exchange of goods and services across nations. This is due to globalization and
Chapter 44 Solutions
Krugman's Economics For The Ap® Course
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