The Effects of a Quota Include

question 52

Multiple Choice

The effects of a quota include:

• A) decreasing consumers' surplus.
• B) increasing total revenue for the importers who sell the allowed number of imported units.
• C) increasing producers' surplus.
• D) b and c
• E) a,b,and c

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Definitions:

In-Kind Transfers

Non-monetary transfers of goods or services provided by governments to individuals as part of social assistance programs.

Elasticity of Labor Demand

A measure of how sensitive the quantity of labor demanded by employers is to a change in the wage rate.

Minimum-Wage Laws

Legislation that sets the lowest hourly wage that employers can legally pay their workers, intended to protect workers from exploitation.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, in a certain period.