If the Government Imposes a Limit on Sales of a Good

question 196

Multiple Choice

If the government imposes a limit on sales of a good or service by licensing the right to sell a given quantity of the good, the difference between the demand and supply price is:

• A) the quota rent.
• B) the market price of the license if the license is tradable.
• C) the quota price.
• D) the quota rent plus the market price of the license if the license is tradable.

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Definitions:

Conditioned Response

A response acquired through conditioning to a stimulus that was once neutral but has become linked with an unconditioned stimulus.

Telephone Ring

The sound made by a telephone to signal an incoming call.

Promotional Calls

Telephone calls made to potential or existing customers to promote or sell goods and services.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.