Which of the following directly affects the price and quantity of foreign-made products in a country by restricting the amount of product that can be imported?
A) Local content law
B) Quotas
C) Cartels
D) Subsidies
E) Protectionism

Question

Quizplus · Accepted Answer

Quotas directly restrict the amount of foreign-made products that can be imported, which in turn affects the price and quantity of those products in the country. Local content laws promote the use of domestic goods, while cartels and subsidies do not necessarily restrict foreign products. Protectionism is a broader concept that encompasses various measures to protect domestic industries, including quotas.

Which of the Following Directly Affects the Price and Quantity