If an Import Quota Is Imposed on Imports of Shrimp

question 71

Multiple Choice

If an import quota is imposed on imports of shrimp into the United States, U.S. producers
And the U.S. economy will _________ .

• A)gain; lose
• B)lose; lose
• C)gain; be unaffected
• D)gain; gain
• E)lose; gain

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Definitions:

Economic Efficiency

A state in which resources are allocated in a way that maximizes the total benefit received by society from those resources.

Consumer Surplus

The divergence between the price consumers are willing to pay and what they really spend on a good or service.

Floor Price

The minimum price set by regulation, often by the government, below which a commodity cannot legally be sold in the market.

Market Supply

The total amount of a specific good or service that is available to consumers in a market at a given time and price.