A Quota ________ a Deadweight Loss and a Tariff ________

question 220

Multiple Choice

A quota ________ a deadweight loss and a tariff ________ a deadweight loss.

• A) creates; creates
• B) creates; does not create
• C) does not create; creates
• D) does not create; does not create
• E) might create; might create

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Definitions:

Repayments

The action of paying back a loan or debt.

Capital Flight

The rapid movement of large sums of money or capital out of a country, typically to avoid economic instability or unfavorable investing conditions.

Financial Capital

Resources, including money and other assets, used by businesses to facilitate and finance their operations.

Developing Countries

countries with a lower level of material well-being, industrialization, and economic performance than developed countries.