The Equivalent Variation resulting from a quota is best defined as
A) the amount a consumer would pay to have the quota removed.
B) the amount the consumer would need to voluntarily accept the quota.
C) the amount a consumer would pay for the quantity specified by the quota.
D) the loss in utility resulting from the quota.
A
You might also like to view...
Suppose that you are an analyst working for a venture capital firm. An individual contacts you about backing his brand new Internet company. What information would you want before making this decision?
What will be an ideal response?
What has been the economic effect of U.S. immigration in the last two decades?
a. Wages for low-skill jobs have declined. b. Wages for low-skill jobs have increased. c. The supply curve for unskilled labor has shifted to the left. d. Demand for skilled and unskilled labor has increased.
A housewife returning to the labor force after 20 years would be _____ unemployed until she finds work.
A. Frictionally B. Structurally C. Cyclically
How much is the marginal propensity to save when disposable income rises from $400 billion to $600 billion?
A. .25
B. .5
C. .75
D. 1.0