A Quota Will Reduce Consumer Welfare When

question 58

Multiple Choice

A quota will reduce consumer welfare when

• A)the quota is less than the amount purchased without the quota.
• B)the quota is greater than the amount purchased without the quota.
• C)the quota is on a good with high income elasticity.
• D)Quotas always reduce consumer welfare.

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Definitions:

Shares Outstanding

The total number of shares of a corporation that have been issued and are currently owned by shareholders.

Reverse Stock Splits

Reverse stock splits consolidate the number of existing shares of a company into fewer, proportionally more valuable shares.

Shares Outstanding

The total number of a company's shares currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Debt Outstanding

Debt outstanding refers to the total amount of debt that a company or government has yet to repay to creditors, including all principal and interest amounts.