If the Government Imposes a Limit on Sales of a Good

question 196

Multiple Choice

If the government imposes a limit on sales of a good or service by licensing the right to sell a given quantity of the good, the difference between the demand and supply price is:

• A) the quota rent.
• B) the market price of the license if the license is tradable.
• C) the quota price.
• D) the quota rent plus the market price of the license if the license is tradable.

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Definitions:

Mentally

Pertaining to the mind or psychological state of an individual.

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Metabolic Syndrome

A cluster of conditions—increased blood pressure, high blood sugar, excess body fat around the waist, and abnormal cholesterol levels—that occur together, increasing the risk of heart disease, stroke, and diabetes.

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