How Will an Export Quota Imposed by a Large Exporting

question 119

Multiple Choice

How will an export quota imposed by a large exporting
Country affect the country's welfare?

• A)It will cause an increase in the country's welfare if the terms of trade gain exceed consumption and production
• Deadweight losses.
• B)It will always a decrease in the country's welfare.
• C)It will always cause an increase in the country's welfare.
• D)It will not change the country's welfare.

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