Given That Quotas Benefit Producers,who Are Few in Number,at a Greater

question 62

Multiple Choice

Given that quotas benefit producers,who are few in number,at a greater expense to consumers,who are more in number,which of the following correctly explains why quotas are still in effect?

• A)Domestic consumers are better organized than domestic producers.
• B)Quotas reduce prices in domestic markets.
• C)The benefits of quotas are concentrated and visible while the costs are dispersed.
• D)When a quota is imposed by the importing country,it lowers prices in the global market.

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Definitions:

Expected Rate Of Return

The predicted amount of return a given investment is anticipated to earn over a specified period.

Total Investment

The aggregate amount of funds invested in an economy by businesses and individuals, including investments in capital assets and inventories.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change.

Market Interest Rates

The prevailing rate of interest determined by supply and demand in the financial markets, affecting loans, mortgages, and savings.