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:

Persistent Fear

An ongoing and continuous sense of apprehension or dread.

Exaggerated Worries

An overestimation of the likelihood of negative outcomes, often seen in anxiety disorders.

Panic Disorder

A psychiatric condition characterized by recurring unexpected panic attacks and the persistent fear of experiencing another attack.

Quit Alcohol

The act of stopping the consumption of alcoholic beverages, often in the context of overcoming alcohol dependence or improving health.