If Wool Growers in Tasmania Lobby the Commonwealth Government to Impose

question 117

Multiple Choice

If wool growers in Tasmania lobby the Commonwealth government to impose an import quota on New Zealand wool,who gains from such a quota?

• A)New Zealand growers
• B)Australian consumers
• C)The Commonwealth government
• D)Australian growers
• E)No one

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Definitions:

Output Price

The price at which a product or service is sold in the market.

Monopolist

A single seller in a market with no close substitutes for the product, giving the seller market power.

Marginal Revenue Product

The increase in revenue a firm expects from employing one additional unit of a resource, such as labor.

Labor Demand Curve

A graph showing the relationship between the quantity of labor demanded by employers and the wage rate, typically illustrating that higher wages lead to lower demand for labor.