Both Import Quotas and VERs Benefit ___________ by Limiting Import

question 22

Multiple Choice

Both import quotas and VERs benefit ___________ by limiting import competition,but they result in higher prices,which hurts __________.

• A) domestic producers; consumers
• B) governments; consumers
• C) consumers; foreign producers
• D) foreign producers; governments
• E) balance of trade; consumers

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Definitions:

Economic Profits

The financial difference between what a business earns in total revenue and what it spends, considering both explicit and indirect costs.

Implicit Costs

The opportunity costs involved in using resources that a firm already owns, for which it does not make a direct payment.

Accounting Profits

The total revenue of a business minus the explicit costs associated with producing goods or services, not accounting for implicit costs.

Economic Profits

The variance between a company's overall earnings and the sum of its explicit and implicit expenditures.