If Protective Import-Restricting Quota Are Imposed by a Country, in the Majority

question 32

Multiple Choice

If protective import-restricting quota are imposed by a country, in the majority of cases that nation's consumers end up

• A) paying a lower price for the good than they otherwise would.
• B) consuming more of the good than they otherwise would.
• C) having more consumption choices than they otherwise would.
• D) consuming less of the good than they otherwise would.

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Definitions:

Rental Rates

The cost associated with leasing or renting property, equipment, or other assets, usually expressed as a price per time period.

Long Run

is a period in economics where all inputs can be adjusted, and no fixed costs or constraints limit production adjustments.

Government Subsidy

Financial assistance provided by the government to individuals, organizations, or industries to support activities beneficial to the public or promote certain economic outcomes.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing to produce and sell.