In Which of the Following Cases Does an Import Quota

question 20

Multiple Choice

In which of the following cases does an import quota result in a higher welfare loss than a tariff?

• A)The domestic firms producing an import-competing product set the product's price equal to the marginal cost of producing it.
• B)The government auctions the import licenses to the highest bidders.
• C)The quota licenses are allocated through resource-using application procedures.
• D)The domestic industry in the importing country is highly competitive.

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Definitions:

Spiritual Needs

The aspects of life that pertain to an individual's sense of purpose, faith, hope, and connection to others and the universe.

Compulsions

Actions or thoughts that a person feels compelled to repeat due to an obsession or strict rules that need to be followed exactly.

Repetitive Behaviors

Actions that are performed over and over again, often compulsively, which can be a characteristic of various psychological conditions.

Persistent Fears

Ongoing and continuous feelings of fear or anxiety about specific objects, situations, or activities that significantly interfere with daily life.