If the U.S.government imposed quotas on imports of clothing,then U.S.
A)imports and exports would both fall.
B)imports would fall and exports would rise.
C)imports would rise and exports would fall.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

A quota on imports of clothing would reduce the quantity of clothing imported into the U.S., leading to a fall in imports. As the U.S. is a net importer of clothing, a reduction in imports would also lead to a fall in exports, as the U.S. would have less clothing to export.

If the USGovernment Imposed Quotas on Imports of Clothing,then U