The Cost of Lobbying for an Import Quota in a Perfectly

question 147

Multiple Choice

The cost of lobbying for an import quota in a perfectly competitive market

• A) increases the welfare loss of the quota.
• B) decreases the deadweight loss of the quota.
• C) shifts the supply curve of the good to the left.
• D) increases the consumer surplus.

---

Definitions:

Risk Premium

The additional return required by an investor for tolerating a higher level of risk compared to a safe investment.

Market Risk

The possibility for investors to experience losses due to factors that affect the overall performance of the financial markets.

Total Risk

The complete spectrum of all types of risk that an investment or project could potentially face, including both systematic and unsystematic risks.

Expected Return

The expected return is the average return expected on an investment over a period.