Refer to the Graph Shown for a Small Country That

question 70

Multiple Choice

Refer to the graph shown for a small country that is a price taker internationally. Assume the foreign supply of this product is perfectly elastic at a price of $4 per unit. Starting from a free trade equilibrium, an import quota of 2,500 would cause domestic consumption to:

• A) increase from 6,100 to 7,400.
• B) increase from 2,400 to 3,600.
• C) decrease from 4,800 to 3,600.
• D) decrease from 7,400 to 6,100.

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Definitions:

Dependent Variable

This is the variable in experimental research that is expected to change as a result of manipulations to the independent variable.

Random Assignment

A method used in experiments to place participants into either a control or experimental group, ensuring that each has an equal chance of being assigned to any given group.

Blind Observations

Observational research in which the observers are unaware of the subjects' conditions or the outcomes expected by the researchers, to prevent bias.

Independent Variable

In an experiment, it is the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.