If the Price U

question 120

Multiple Choice

If the price U.S. consumers pay with a quota on an imported good exceeds the price they pay without a quota, then the quota was set

• A)above the equilibrium quantity without a quota.
• B)below the equilibrium quantity without a quota.
• C)sometimes above and sometimes below the equilibrium quantity without a quota.
• D)equal to the equilibrium quantity without a quota.
• E)to allow a different quantity of imports than a tariff.

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Definitions:

Δq/ΔL

The change in quantity produced per unit change in labor, often related to the marginal product of labor.

Marginal Product

The additional output generated by employing one more unit of a particular input, holding other inputs constant.

Average Product

The amount of output produced on average by each unit of a variable input, such as labor, in the production process.

Marginal Product

is the additional output resulting from a one-unit increase in the quantity of one input while holding other inputs constant, illustrating the concept of diminishing returns.