### Quiz Question on Import Quotas#### Question 1:**Import Quotas have all of the following effects, except:**- ○ Raise the domestic price above the world price- ○ Reduce quantity below the free-trade level- ○ Lower consumer surplus- ○ Increase producer surplus- ○ Increased Investment### Note:Moving to another question will save this response.---By utilizing this multiple-choice question in an educational setting, students can gain a greater understanding of the implications of import quotas on domestic markets. The question requires them to identify which effect is *not* caused by import quotas, testing their comprehension of economic principles related to trade restrictions.

Quote sets the limits of import above which a country cannot import a good.

Question 1 Import Quotas have all of the following effects, except: Raise the domestic price above the world price Reduce quantity below the free-trade level Lower consumer surplus Increase producer surplus Increased Investment

Question 1 Import Quotas have all of the following effects, except: Raise the domestic price above the world price Reduce quantity below the free-trade level Lower consumer surplus Increase producer surplus Increased Investment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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