Which of the Following Conditions Makes It Most Likely for a Quota

question 43

Multiple Choice

Which of the following conditions makes it most likely for a quota to be imposed?

• A) The benefits of the quota are spread over many and the costs are concentrated on a few.
• B) The benefits of the quota are spread over many and the costs are spread over many.
• C) The benefits of the quota are spread over few and the costs are spread over many.
• D) The benefits of the quota are spread over few and the costs are spread over few.
• E) There is not enough information to answer the question.

---

Definitions:

Balance Budget

A financial statement in which revenues and expenditures are equal, resulting in no deficit or surplus.

GDP

The total market value or monetary sum of all final goods and services produced within a nation's boundaries during a defined timeframe is known as Gross Domestic Product.

Multiplier

In economics, a factor that quantifies the impact of an initial change in spending, income, or investment on the broader economy, amplifying the initial effect.

Inflationary Gap

A macroeconomic term referring to the situation where the demand for goods exceeds the supply, leading to increased prices or inflation.