An Import Quota

question 88

Multiple Choice

An import quota

• A)is preferable to a tariff since an import quota does not create a deadweight loss.
• B)is a tax on imported goods.
• C)reduces the welfare of domestic consumers.
• D)reduces the welfare of domestic producers.

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Definitions:

Doodads

A nonspecific term often used to refer to small, miscellaneous items or gadgets.

Producer Surplus

The difference between the amount a producer is willing to accept for a good versus what they actually receive, often due to market prices.

Government Imposes

Actions taken by the government to regulate, tax, or otherwise exert authority over individuals and organizations, typically with the aim of affecting economic outcomes.

Tax

A compulsory economic imposition or another variety of levy tasked to a taxpayer by a governmental structure to provision government financial obligations and various public welfare expenses.