Throughout the world, governments tend to auction quota licenses to their highest bidder ?
Correct answer: C. seldom
- A. always
- B. often
- C. seldom
- D. never
Explanation
Governments seldom auction quota licenses; they commonly allocate them administratively or grant them to domestic firms. Auctioning would transfer the quota rent to the government, but it is not the usual practice.
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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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