Refer to the Above Diagram, Where S_d and D_d Are

question 95

Multiple Choice

Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and Pc is the world price of that product.S_d + Q is the product supply curve after an import quota is imposed.The effect of the import quota on domestic price and domestic consumption is:

• A)the same as that of a tariff of P_cP_t.
• B)the same as that of a tariff of P_tP_a.
• C)the same as that of a tariff of P_cP_a.
• D)to raise price by more and reduce consumption less than a tariff of P_cP_t.

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Definitions:

Basic Income

A socioeconomic policy of providing all citizens with a regular, unconditional sum of money, regardless of employment status or other income.

Large Inequalities

Substantial discrepancies in income, wealth, access to resources, and quality of life among different populations or groups within a society.

National Prosperity

The overall economic health and wealth of a nation, typically measured by GDP, job growth, and other economic indicators, reflecting the standard of living and quality of life of its population.

Socioeconomic Background

The social and economic circumstances that characterize the background of an individual or group, affecting their opportunities and life decisions.