A quota
A)makes domestic consumers better off.
B)makes both domestic producers and consumers better off.
C)makes everyone worse off.
D)makes domestic producers better off.

Question

Quizplus · Accepted Answer

A quota is a restriction placed on the amount of goods that can be imported into a country. By limiting the amount of imports, a quota benefits domestic producers by reducing competition and allowing them to charge higher prices. However, it ultimately makes everyone worse off because it creates inefficiencies in the market, reduces consumer choice, and can lead to retaliation by the affected countries. Therefore, choice D is the best answer as it correctly identifies that quotas benefit domestic producers at the expense of everyone else.

A Quota