Corporate managers and shareholders always have the same goals

What is the crowding-out effect and how does it work?

What will be an ideal response?

Refer to Figure 9-3. Without the quota, the domestic price of peanuts equals the world price which is $2.00 per pound. What is the quantity of peanuts supplied by domestic producers in the absence of a quota?

A) 10 million pounds B) 28 million pounds C) 30 million pounds D) 40 million pounds