The Effect of a Quota Is to

question 25

Multiple Choice

The effect of a quota is to

• A)Increase consumer surplus.
• B)Increase consumer surplus
• C)Reduce consumer surplus
• D)Reduce producer surplus.

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Definitions:

Real Hourly Earnings

Refer to the purchasing power of an hour's work, adjusted for inflation, indicating the real value of wages over time.

Productivity

The measure of efficiency depicted as the ratio of total output produced to a total input used, often used to gauge the efficiency of production or economic performance.

Occupational License

A form of certification or permit indicating that an individual is qualified to carry out a specific job or profession.

Labor Market

The supply and demand for labor, where employers seek to hire workers and workers look for jobs.