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Import Quotas and VERs
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Import Quotas and VERs
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9. International Trade / Import Quotas and VERs / Problem 2
Problem 2
How does an import quota create deadweight loss, and what does this imply for economic efficiency?
A
It creates deadweight loss by restricting trade, reducing efficiency.
B
It creates deadweight loss by decreasing consumer surplus, improving efficiency.
C
It creates deadweight loss by increasing producer surplus, reducing efficiency.
D
It creates deadweight loss by increasing trade, improving efficiency.
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