Figure 9.9
-Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. Government revenue from the quota will be
A) $0.
B) $2,500.
C) $7,500,000.
D) $12,500,000.
E) $13,125,000.

Question

Figure 9.9
-Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. Government revenue from the quota will be
A) $0. 
B) $2,500. 
C) $7,500,000. 
D) $12,500,000. 
E) $13,125,000.

Quizplus · Accepted Answer

An import quota does not generate government revenue directly, as it limits the quantity of goods that can be imported rather than imposing a tax or tariff.

Figure 9.9 -Refer to Figure 9.9. Now Suppose an Import Quota of Quota