By Restricting the Amount of a Good That May Be

question 13

Multiple Choice

By restricting the amount of a good that may be imported,quotas:

• A)increase the price,thus causing domestic producers to sell less than they would with free trade.
• B)lower the price,thus allowing domestic producers to sell more than they would with free trade.
• C)increase the price and allow domestic producers to sell more at a higher price than they would with free trade.
• D)lower the price,thus causing domestic producers to realize lower total revenue from the quota item.
• E)simply replace foreign production with domestic production.

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Definitions:

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed propositions (premises), each of which shares a common or middle term not present in the conclusion.

Figure

An object's shape, outline, or representation in art or mathematics, or a notable person in a particular field.

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed propositions (premises); a logical structure that uses three parts.

Middle Term

In a categorical syllogism, the term that appears in both premises and links together the major and minor terms.