In the Case of a Small Country, the Effects of a Quota

question 56

Multiple Choice

In the case of a small country, the effects of a quota and a tariff are (almost) identical if:

• A)the government allocates licenses for free to importers using a rule or process that involves (almost) no resource cost.
• B)the government auctions off import licenses to the highest bidder.
• C)the government allocates licenses to importers through application and selection procedures that require the use of substantial resources.
• D)the government allocates import licenses directly to the public using a free lottery system.

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Definitions:

Sympathetic Nervous System

The Sympathetic Nervous System is part of the autonomic nervous system that activates the body's rapid involuntary response to stressful or emergency situations, also known as the "fight or flight" response.

Adrenal Glands

Small, triangular glands located on top of both kidneys that produce a variety of hormones, including adrenaline and cortisol, involved in stress responses.

Epinephrine

Also known as adrenaline, a hormone and neurotransmitter involved in the body's fight or flight response, increasing heart rate, muscle strength, and blood pressure.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response; it affects attention and responding actions in the brain.