The Windfall Price Increase of an Imported Good That Results

question 27

Multiple Choice

The windfall price increase of an imported good that results when a quota is imposed on that good accrues to

• A) consumers who benefit from the lower-priced domestic substitutes.
• B) no one, since only a tariff generates an explicit revenue stream.
• C) firms in the industry protected by the imposition of the quota.
• D) the government because it imposes the quota.
• E) the importer who is successful in getting a license to import the good.

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Definitions:

Methadone

A synthetic opioid used medically both for pain management and as a treatment for narcotic addiction, especially heroin.

Toxemia

A medical condition in pregnant women characterized by high blood pressure, swelling, and protein in the urine, also known as pre-eclampsia.

Thalidomide

A drug originally marketed in the 1950s as a sedative, but later found to cause birth defects when taken by pregnant women, leading to strict controls on its use.

Kaposi's Sarcoma

A type of cancer that forms in the lining of blood and lymph vessels, often associated with weakened immune systems, like in AIDS.