If protective import-restricting quotas are imposed by a country, in the majority of cases that nation's consumers end up
A. consuming more of the good than they otherwise would.
B. paying a lower price for 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.
Answer: D
You might also like to view...
Points outside the production possibilities frontier represent
a. unemployment of resources b. inefficient use of resources c. combinations that are attainable only if all resources are used fully and efficiently d. currently unattainable combinations of outputs e. the only currently attainable combinations from which society must choose
According to the Coase theorem, there will be an efficient solution to the problem of toxic waste: a. if the creator of the toxic waste is assigned the property right and the bargaining costs are high. b. if the victim of toxic waste is assigned the property right and the bargaining costs are high. c. regardless of which party is assigned the property right if bargaining costs are small
d. if the property rights are shared equally between the creator and the victim of the toxic waste.