The Effects of a Quota Include

question 52

Multiple Choice

The effects of a quota include:

• A) decreasing consumers' surplus.
• B) increasing total revenue for the importers who sell the allowed number of imported units.
• C) increasing producers' surplus.
• D) b and c
• E) a,b,and c

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Definitions:

Sales Tax

A tax imposed on sales of goods and services, usually calculated as a percentage of the purchase price paid by the consumer.

Country Population

The total number of people living within the borders of a specific country at a given time.

Stock Variable

A quantity measured at one specific time, representing a certain amount accumulated up to that time.

Money Supply

The total amount of monetary assets available in an economy at a specific time.