Which of the Following Would Result from a Quota Imposed

question 26

Multiple Choice

Which of the following would result from a quota imposed on the quantity of cars that can be imported into the United States?

• A) an increase in the total surplus
• B) an increase in producer surplus
• C) an increase in prices paid by consumers
• D) an increase in consumer surplus

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Definitions:

Strict Liability

A legal doctrine that holds a party responsible for damages or harm caused by their actions, without the need to prove negligence or fault.

Strict Product Liability

Liability under which, courts may hold the manufacturer, distributor, or retailer liable for any reasonably foreseeable injured party.

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation.

Breach of Warranty

The failure to fulfill the terms of a promise or claim made regarding the quality or nature of a product or service.