A Quota Is

question 113

Multiple Choice

A quota is

• A)a limit placed on the quantity of goods that can be imported into a country.
• B)a tax imposed by a government on goods imported into a country.
• C)a subsidy granted to importers of a vital input.
• D)a health and safety restriction imposed on an imported product.

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Definitions:

Utility Function

A mathematical representation of how consumers rank different bundles or combinations of goods and services according to the level of satisfaction or utility those combinations provide.

Paasche Price Index

An economic measure that calculates the change in the cost of acquiring a given basket of goods and services in the current period compared to a base period, using the current period quantities as weights.

Doggerel

A term used to describe poetry that is irregular in rhythm, rhyme, or is of a trivial or low quality.

WARP

Stands for the Weak Axiom of Revealed Preference, a criterion used in consumer choice theory to assess whether observed choices are consistent with rational behavior.