When an Import Quota Is Imposed, the Gap Between the Domestic

question 7

Multiple Choice

When an import quota is imposed, the gap between the domestic price and the world price is captured by

• A)the domestic producers of the good.
• B)consumers in the importing country.
• C)the importers of the good.
• D)foreign exporters.
• E)the government of the importing country.

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Definitions:

Marginal Benefit

The boost in satisfaction or utility experienced upon consuming one more unit of a particular good or service.

Hotel Manager

A person responsible for the daily management of a hotel and its staff, focusing on aspects such as operations, financials, and customer service.

Rational Decisionmaker

An individual or entity that makes decisions by systematically evaluating available information and outcomes to choose the best possible option.

Marginal Benefit

The extra pleasure or benefit obtained from using an additional unit of a product or service.