In the large country case, the imposition of an import quota

Question

Quizplus · Accepted Answer

Imposing an import quota can result in a net gain for the importing country if the government employs an Auction quota system to allocate the restricted imports. This allows the government to generate revenue from the sale of import licenses, which could be used to offset any potential losses from the reduced imports. However, the other options are not necessarily true as there could be other factors and circumstances that affect the outcomes.

In the Large Country Case, the Imposition of an Import