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Basic Question 6 of 17
An import quota ______
B. increases domestic production and reduces domestic prices.
C. reduces domestic production and increases domestic prices.
A. increases both domestic production and domestic prices.
B. increases domestic production and reduces domestic prices.
C. reduces domestic production and increases domestic prices.
User Contributed Comments 1
| User | Comment |
|---|---|
| choas69 | Tariffs - Quotas - VER - & Export subsidies result in: 1- import falls. 2- higher prices. 3- consumer surplus falls. 4- producer surplus rises. 5- domestic quantity supplied rises. |
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Learning Outcome Statements
compare types of trade restrictions, such as tariffs, quotas, and export subsidies, and their economic implications
CFA® 2024 Level I Curriculum, Volume 1, Module 6.