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Import Quotas and VERs
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Problem 10
Import Quotas and VERs
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9. International Trade / Import Quotas and VERs / Problem 4
Problem 4
What is the impact of an import quota on market efficiency?
A
It increases market efficiency by reducing prices.
B
It creates deadweight loss, reducing market efficiency.
C
It has no impact on market efficiency.
D
It eliminates deadweight loss, increasing market efficiency.
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