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Which of the Following Statements About Quotas Is True

Question 5

Multiple Choice

Which of the following statements about quotas is true?


A) Quotas make consumers better off by ensuring that domestically manufactured products are of as high quality as possible.
B) Quotas increase the quantity supplied by encouraging more domestic production.
C) Quotas increase the price above the market equilibrium.
D) Quotas provide some revenue to the government imposing them, while tariffs merely increase the well-being of foreign consumers.

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