If an Economist States That Not Enough of a Good

question 53

Multiple Choice

If an economist states that not enough of a good is being produced,she usually means that

• A) not everyone can afford the good.
• B) price exceeds marginal cost.
• C) consumer surplus equals zero.
• D) at equilibrium, some people who still wish to sell the good cannot find a buyer.

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Definitions:

Tariff

A tax imposed on imported or, less commonly, exported goods, used to regulate trade and protect domestic industries.

Import Quota

A government-imposed limit on the quantity of a certain good that can be imported into the country over a specified period.

Tax On Imports

A financial charge imposed by a government on goods imported into a country to regulate trade and raise revenue.

Export Restriction

Export restriction is a policy imposed by governments to limit or control the export of certain goods, services, or technology, often for political, economic, or environmental reasons.