Question

Assume that the United States imposes an import quota on imported soybeans Q4-Q2. Which of the following best defines the impact of this quota?

Option a) Reduces the quantity of imported soybeans allowed beyond a certain threshold.
Option b) Increases the total quantity of imported soybeans permitted.
Option c) Stabilizes the price of imported soybeans in the market.
Option d) Eliminates the need for regulation on soybean imports.

Answer 1

Imposing an import quota on soybeans reduces the quantity of imported soybeans allowed beyond a certain threshold.

Step-by-step explanation:

When the United States imposes an import quota on imported soybeans, it reduces the quantity of imported soybeans allowed beyond a certain threshold. This means that there is a limit on the amount of soybeans that can be imported into the country. The quota sets a maximum quantity allowed, and any soybeans beyond that limit cannot be imported. This policy aims to protect domestic soybean producers and limit competition from foreign imports.