Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 16

The restriction in problem prevents many transactions from occurring. The opportunity loss associated with this restriction is called _______.
A) Deadweight loss
B) Negative surplus
C) Rent-seeking
D) National surplus
Problem :
The U.S. government determines that the number of avocados imported to the United States from other countries is severely affecting California avocado fanners. It decides to limit the number of foreign-grown avocados. Such a restriction is called a(n) ________.
A) Quota
B) Negative surplus
C) Import enhancement
D) Tariff