Import Quotas Tend to Lead to All of the Following

question 20

Multiple Choice

Import quotas tend to lead to all of the following except:

• A) Domestic producers of the imported good being harmed
• B) Domestic consumers of the imported good being harmed
• C) Prices increasing in the importing country
• D) Prices falling in the exporting country

Understand the impact of attributions on perceptions of ability and effort.

Describe the effects of task difficulty and success/failure on attributions.

Recognize common biases in attribution, including the false consensus effect.

Understand the concept of linear relationships between two variables.

---

Definitions:

Marginal Revenue (MR)

The extra income a company earns by selling an additional unit of a product or service.

Demand Curve

A visual depiction of how the demand for a product or service correlates with its price over a specific time frame.

Profit-Maximizing

This refers to the process or level of output at which a business can achieve the highest profit, where marginal revenue equals marginal cost.

Barriers to Entry

Factors that make it difficult for new firms to enter a market, such as high initial investment, complex regulation, or strong incumbent competition.