Suppose That the Country of Pacifica Imposes a Quota on Bananas

question 37

Multiple Choice

Suppose that the country of Pacifica imposes a quota on bananas. The reason that the government imposed this trade restriction could be

• A) that the government of Pacifica needs to increase its revenue.
• B) lobbying from banana farmers in Pacifica.
• C) comparative advantage.
• D) Both answers A and B are correct.

Identify the characteristics that distinguish services from tangible goods.

Understand the classification of services based on their method of delivery (people-based vs. equipment-based).

Recognize the unique marketing concerns associated with different types of services.

Distinguish between for-profit and nonprofit organizations in the context of service delivery.

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Definitions:

Voting Outcome

The result of a voting process, determining which candidates or measures have been selected or rejected based on majority preference.

Majority Vote

A decision rule in which the option that receives more than half of the votes is chosen.

Economic Efficiency

A state where resources are allocated in the most effective way possible, maximizing output without wasting any inputs, ensuring that goods and services are produced at the lowest possible cost and distributed to those who value them most.

Deregulation

The process of removing or reducing government controls and restrictions in an industry to allow for more competition and efficiency.