Asked by
Jayson Blacklock
on Oct 26, 2024
Verified
A quota is a:
A) quantity restriction.
B) price control.
C) form of consumer surplus.
D) means to combat black markets.
Quota
An official constraint on trade that controls the volume or monetary amount of items permitted for export or import during a designated period.
Quantity Restriction
Limits on the amount of a particular good that can be produced, sold, or purchased.
Price Control
Government-imposed limits on the prices charged for goods and services in a market, often aimed at maintaining affordability or curbing inflation.
- Identify and describe the role and effects of quotas in market operation.
- Understand the economic rationale behind using price controls and quotas as market interventions.
Verified Answer
RM
Learning Objectives
- Identify and describe the role and effects of quotas in market operation.
- Understand the economic rationale behind using price controls and quotas as market interventions.