Figure 9.5.2
-Refer to Figure 9.5.2 above. 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 9.5.2
-Refer to Figure 9.5.2 above. 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

Government revenue from an import quota is $0 because quotas limit the quantity of goods that can be imported but do not directly generate revenue for the government. Revenue could be generated from tariffs, but that is not the case with quotas.

Figure 9.5.2 -Refer to Figure 9.5.2 Above. Now Suppose an Import Quota