________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?
Correct answer: B. quota rents
- A. quota license
- B. quota rents
- C. quota prices
- D. None of the above
Explanation
Quota rents are the extra profits created when a quota makes the domestic price higher than the foreign price. They accrue to whoever holds the right to import the restricted good.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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