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Basic Question 6 of 17

An import quota ______

A. increases both domestic production and domestic prices.
B. increases domestic production and reduces domestic prices.
C. reduces domestic production and increases domestic prices.
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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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Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh

Craig Baugh

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.