Tackle the Test: Multiple-Choice Questions

1. Question

   If the government established a quota of 1,000 in this market, the demand price would be

   A.

   less than $4.

   B.

   $4.

   C.

   $6.

   D.

   $8.

   E.

   more than $8.

   If the government established a quota of 1,000 in this market, the demand price would be

2. Question

   If the government established a quota of 1,000 in this market, the supply price would be

   A.

   less than $4.

   B.

   $4.

   C.

   $6.

   D.

   $8.

   E.

   more than $8.

   If the government established a quota of 1,000 in this market, the supply price would be

3. Question

   If the government established a quota of 1,000 in this market, the quota rent would be

   A.

   $2.

   B.

   $4.

   C.

   $6.

   D.

   $8.

   E.

   more than $8.

   If the government established a quota of 1,000 in this market, the quota rent would be

4. Question

   Quotas lead to which of the following?

   
   

   
   

   1. inefficiency due to missed opportunities

      
      
   
   

   2. incentives to evade or break the law

      
      
   
   

   3. a surplus in the market
      

      
      
   
   

   A.

   I

   B.

   II

   C.

   III

   D.

   I and II

   E.

   I, II, and III

   Quotas lead to which of the following?

5. Question

   Which of the following would decrease the effect a quota has on the quantity sold in a market?

   A.

   decrease in demand

   B.

   increase in supply

   C.

   increase in demand

   D.

   price ceiling above the equilibrium price

   E.

   none of the above

   Which of the following would decrease the effect a quota has on the quantity sold in a market?