A Quota on Imported Avocadoes ______________ the Price of Avocadoes,_____________

question 98

Multiple Choice

A quota on imported avocadoes ______________ the price of avocadoes,_____________ consumers' surplus for avocado buyers,_______________ producers' surplus of avocado growers and __________________ tariff revenue.Because the loss to _____________ is more than the gain to ___________________,there is a net loss to society.

• A) raises; increases; decreases; generates; producers; consumers and government
• B) lowers; increases; decreases; does not generate; producers; consumers
• C) raises; increases; decreases; does not generate;consumers; producers and importers
• D) raises; decreases; increases; generates; consumers; producers and government

---

Definitions:

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of the investment.

Profit Margin

The ratio of net income to revenue, indicating how much profit is made on average from sales.

Authority

The authority or capability to issue commands, make choices, and ensure compliance.

Decision

The act or process of choosing a particular action among various alternatives based on the expected outcomes.