Quotas Often

question 77

Multiple Choice

Quotas often:

• A) result in few incentives to engage in illegal activities.
• B) lead to deadweight losses resulting from a wedge between the price of sellers and that of demanders.
• C) lead to efficient market outcomes.
• D) are necessary to increase the quantity of the goods in the market.

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Definitions:

Calorie Limit

A nutritional guideline specifying the maximum number of calories to be consumed in a day to maintain or achieve certain health goals.

Seafood Salads

A dish made primarily of various types of seafood and mixed with vegetables, dressings, or other ingredients, often served cold.

Budget Set

The collection of all possible combinations of goods and services that a consumer can afford with a given budget at current prices.

Price Reduced

A decrease in the cost at which goods or services are sold, typically to stimulate demand or clear inventory.