Which of the following conditions makes it most likely for a quota to be imposed?
A) The benefits of the quota are spread over many and the costs are concentrated on a few.
B) The benefits of the quota are spread over many and the costs are spread over many.
C) The benefits of the quota are spread over few and the costs are spread over many.
D) The benefits of the quota are spread over few and the costs are spread over few.
E) There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

When the benefits of the quota are concentrated on few people or industries and the costs are spread over many, it becomes more likely that a quota will be imposed. This is because the few people or industries benefiting from the quota may lobby the government to impose it, while the costs to consumers of the restricted imports may not be as visible or vocal. Therefore, choice C is the best answer.

Which of the Following Conditions Makes It Most Likely for a Quota