Which of the following is not correct concerning quotas?
a. The enactment of quotas rewards domestic producers with higher prices.
b. The enactment of quotas creates opportunities for lobbyists to seek the perpetuation of quotas.
c. Quotas on steel, textiles and apparel, and sugar have been in effect for several decades.
d. Lobbying efforts by domestic producers and foreign exporters are vigorously fought by domestic consumers.
e. The auctioning of quotas would reduce their attractiveness to foreign exporters.
D
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When the production possibilities curve shifts outward,
A) the price level rises in the long run. B) the long-run aggregate supply curve is unchanged. C) the long-run aggregate supply curve shifts to the left. D) the long-run aggregate supply curve shifts to the right.
What is the most likely result when the price of a good with elastic demand is raised by 10 percent?
(A) The quantity sold will decrease by 15 percent. (B) The quantity sold will increase by 10 percent. (C) The quantity sold will decrease by 10 percent. (D) The quantity sold will decrease by 5 percent.