All of the Following Are True of Quotas EXCEPT ________

question 2

Multiple Choice

All of the following are true of quotas EXCEPT ________.

• A) they may be used to protect domestic producers by placing a limit on the amount of goods allowed to enter the country
• B) they help domestic producers maintain their market shares and prices
• C) domestic producers may win because their market is protected
• D) prices of intermediate goods always decrease