A country that imposes a quota on imported goods is most likely to experience which drawback?A.The price of imported goods will significantly decline.B.Working conditions in domestic companies will become worse.C.Consumers will have access to a smaller variety of products.D.Pollution and other environmental problems will increase.
Question
A country that imposes a quota on imported goods is most likely to experience which drawback?A.The price of imported goods will significantly decline.B.Working conditions in domestic companies will become worse.C.Consumers will have access to a smaller variety of products.D.Pollution and other environmental problems will increase.
Solution
The most likely drawback a country that imposes a quota on imported goods would experience is C. Consumers will have access to a smaller variety of products.
Here's why:
A quota is a limit on the amount of a specific product that can be imported during a specific period. This means that once the quota is reached, no more of that product can be imported until the next period begins.
This limitation on imports can lead to a smaller variety of products available to consumers. If a country, for example, sets a quota on the import of a certain type of fruit, consumers in that country will have less variety of that fruit to choose from. They will only have access to the types of that fruit that are grown domestically, or that have been imported before the quota was reached.
The other options are less likely:
A. The price of imported goods will significantly decline - This is unlikely because quotas usually lead to a decrease in supply, which can actually increase prices.
B. Working conditions in domestic companies will become worse - There's no direct correlation between import quotas and working conditions.
D. Pollution and other environmental problems will increase - While it's possible that domestic production could increase as a result of import quotas, leading to more pollution, this is a less direct impact and not as likely as option C.
Similar Questions
A country that imposes a tariff on imported goods is most likely to experience which benefit?A.Working conditions for domestic workers will improve relative to other countries.B.A wider variety of imported products will become available to consumers.C.The country will begin producing goods more efficiently than other countries.D.Goods produced by domestic companies will be cheaper than competing imports.
Similar to import tariffs, import quotas tend to result in decreased producer surplus increased consumer surplus increased government revenue higher prices and reduced imports
Creating barriers to trade can lead to which problem?A.Other countries will retaliate by creating their own barriers to trade.B.The country will become overly reliant on foreign countries.C.Domestic businesses will face more competition from foreign companies.D.Consumers will be more likely to buy luxury goods in foreign markets.
As part of a trade war, country A agrees to introduces a quota on cars imported from country B. Country A can then expect Group of answer choices the price and the quality of cars imported from country B to decrease the price and the quality of cars imported from country B to increase the price of cars imported from country B to decrease, and their quality to remain the same the price of cars imported from country B to increase, and their quality to decrease
How do quotas act as barriers to trade?A.They use government funds to lower the cost of domestic goods.B.They force imported goods to meet certain criteria.C.They set limits on the total amount of imported goods.D.They tax imported goods in order to increase their price.
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