Exhibit 30-1 -A Quota Set Below the Free Market Equilibrium Quantity of Equilibrium

question 99

Multiple Choice

Exhibit 30-1
-A quota set below the free market equilibrium quantity of imports will mean that

• A)consumers will pay a price that would prevail in a foreign country.
• B)foreign producers will receive a price higher than the market equilibrium price without a quota.
• C)consumers will pay a price higher than the market equilibrium price without a quota.
• D)foreign producers will receive a price equal to the market equilibrium price without a quota.
• E)consumers will pay a price lower than the market equilibrium price without a quota.

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Definitions:

Technological Progress

The overall process of invention, innovation, and diffusion of technology or processes, which typically contributes to economic growth.

Aggregate Demand

The totality of market demand for goods and services within an economy, set at an agreed-upon general price level over an established period.

Money Supply

The total fiscal assets present in an economy at a specific moment.

Long-Run Aggregate Supply

Represents the total output an economy can produce when both capital and labor resources are fully employed at their highest productivity levels.