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:

Alfalfa

Alfalfa is a perennial flowering plant widely cultivated as fodder for cattle due to its high nutrient content.

Comparative Advantage

An economic principle that suggests a country, individual, or company is most efficient at producing a certain good or service compared to others, enabling trade benefits.

Absolute Advantage

The ability of a country, company, or individual to produce a good or service at a lower cost per unit than competitors using the same amount of resources.

Soybeans

A leguminous plant originating from East Asia, extensively cultivated for its consumable beans that have various applications.