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:

Extraction Cost

Extraction cost is the expense associated with removing raw materials or natural resources from the Earth, factoring in labor, energy, and technology requirements.

ITQs

Individual Transferable Quotas; regulatory tools used in fisheries management to control the total amount of fish that can be caught by allocating specific allowances to fishermen or companies.

Sockeye Salmon

A species of salmon found in the Pacific Ocean, known for its red flesh and high commercial value.

Market Price

The present cost at which a service or asset is available for purchase or sale on the market.