Solved: Quotas lead to which of the following I. inefficiency due to missed

Chapter 0, Problem 4

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QUESTION:

Quotas lead to which of the following? I. inefficiency due to missed opportunities II. incentives to evade or break the law III. a surplus in the market a. I b. II c. III d. I and II e. I, II, and III

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QUESTION:

Quotas lead to which of the following? I. inefficiency due to missed opportunities II. incentives to evade or break the law III. a surplus in the market a. I b. II c. III d. I and II e. I, II, and III

ANSWER:

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Quota is a restriction that the government imposes on the volume of exports and imports of a country in order to regulate the international trade of a country with the rest of the world.

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