GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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“Suppose US Government imposes a quota on the import of foreign cars.”-Questions such as “ What will happen to the price, production and sales of cars? What will be the impact of this policy have on American consumers? On Workers in the automobile industry?” Belong to
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1. Normative Analysis
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2. Negative Analysis
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3. Normal Analysis
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4. Positive Analysis
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Explanation:
Detailed explanation-1: -Which result would you expect from a U.S. import quota on automobiles? lower automobile prices for U.S. customers.
Detailed explanation-2: -Tariffs are taxes on imports; quotas are quantity limits on how many imports can enter the country. Both tariffs and quotas increase the equilibrium price and decrease the equilibrium quantity in the domestic market, compared to free trade.
There is 1 question to complete.