An Import Quota Increases Domestic Producer Surplus and the Surplus

question 6

True/False

An import quota increases domestic producer surplus and the surplus of import licence holders, reduces domestic consumer surplus, and creates deadweight loss.

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Definitions:

Common Law

A legal system based on customs, traditions, and judicial decisions, rather than written laws.

Convenient Location

A place that is easy to reach or access due to its proximity to major routes or facilities.

Fundamental Principles

Basic concepts, norms, or rules that underlie and guide an action, procedure, or system.

Constitution

The core rules or long-standing guidelines that dictate how a state or any other entity is managed.