Which of the following is not correct about quotas?

A) The imposition of quotas rewards domestic producers with higher prices.
B) The imposition of quotas creates opportunities for lobbyists to seek the perpetuation of quotas.
C) Quotas on steel,textiles and apparel,and sugar have been in effect for several decades.
D) Lobbying efforts by domestic producers and foreign exporters are vigorously fought by domestic consumers.
E) The auctioning off of quotas to foreign producers would increase federal revenue.

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Breanna Stewart · Accepted Answer

Final Answer : D, Explanation :  Quotas often lead to lobbying by both domestic producers and foreign exporters to maintain or adjust quotas to their benefit. However, the statement that such lobbying efforts are vigorously fought by domestic consumers is not accurate. In many cases, the general public (domestic consumers) may not be as organized or vocal in opposing quotas, partly because the effects of quotas are dispersed among many consumers, making the per-person cost relatively low and reducing the incentive for individual consumers to take action.

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