Which of the Following Correctly Identifies the Effect of an Import

question 52

Multiple Choice

Which of the following correctly identifies the effect of an import quota on a good?

• A)Domestic producers do not gain from an import quota.
• B)The gain to domestic producers is higher than the loss to domestic consumers.
• C)Prices in the global market will fall due to the imposition of an import quota.
• D)Domestic consumers bear the burden of an import quota in terms of higher domestic prices.

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Definitions:

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