When increases in nonrestraint supply offset part of the cutback in shipments that occur under an export quota, the overall inefficiency loss for the importing country is less than that which would have occurred in the absence of nonrestrained exports.

Question

Quizplus · Accepted Answer

Nonrestrained exports can offset the inefficiency loss caused by an export quota, resulting in a lower overall inefficiency loss for the importing country. Therefore, the statement is true.

When Increases in Nonrestraint Supply Offset Part of the Cutback