The effect of a quota is to
A) increase quantity supplied and lower price.
B) increase quantity supplied and increase price.
C) increase demand for the good and increase price.
D) reduce quantity supplied and raise price.
D
You might also like to view...
If a company could spend $3 per bicycle on a safety device that would prevent $2,000 worth of harm for every 1,000 bicycles sold, spending the $3 would be a cost-justified precaution
Indicate whether the statement is true or false
Credit markets are
A) bad, as they cause people to accumulate debt. B) not important for the financial crisis. C) important, but given too little attention in the past by macroeconomists. D) markets that work perfectly.
Will a large quantity of bonds held in the Social Security Trust Fund make it easier to deal with the retirement of the baby boomers?
a. Yes; the federal government will be able to redeem these bonds in the future without raising taxes or increasing its borrowing. b. Yes; the interest on these bonds will provide the federal government with a stream of net revenue in the future. c. Yes, but only if the federal government holds these bonds until they mature. d. No; the federal government cannot redeem the bonds without raising revenues for their redemption from other sources.
Which of the following would increase the consumption component of U.S. GDP?
A. You purchase a bottle of California wine. B. A restaurant in Denver purchases a bottle of California wine to include on its wine list. C. The U.S. government buys a bottle of California wine to serve at a state dinner in the White House. D. A person in Paris purchases a bottle of California wine.