Which of the Following Statements Is Not Generally True of a Production

question 72

Multiple Choice

Which of the following statements is not generally true of a production quota?

• A)The market will not clear due to the excess supply of that good.
• B)Consumer surplus increases when compared to the market before the quota.
• C)Producer surplus may increase or decrease.
• D)Some of the consumer surplus will be transferred to producers.

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Definitions:

Trusting Relationships

Bonds between individuals or entities characterized by confidence, reliability, and the expectation of honesty.

Social Capital

The networks of relationships among people who live and work in a particular society, enabling that society to function effectively.

Financial

Related to the management, investment, or collection of money, often within a business or organization.

Structural

Related to or involving the physical makeup or configuration of something, often referring to buildings, bridges, or other edifices.