Figure the soybean market a quota generates a

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(Figure: The Soybean Market) A quota generates a protective effect just like a tariff. Use the figure to calculate the “equivalent import tariff” that would produce the same result as an import quota of 200 units.$1 (Incorrect) $2 (Incorrect) $3 (True Answer Correct) $4 (Incorrect) 144
Figure: The Soybean Market Reference: Ref 7-11 (Figure: The Soybean Market) Because there is no government revenue as a result of the quota, one of the parties in the trade transaction makes a “return” equal to lost government revenue (PMC) × Qimports. This is called:
Incorrect) 145 Quota rents are:
146 Who collects quota rents when the government gives quota licenses to domestic firms?
147 Rent-seeking activities are: landowners' efforts to receive higher returns for their land. (Incorrect) bribery and lobbying activities to obtain quota licenses. (True Answer Correct) foreign suppliers' efforts to reduce quotas. (Incorrect) domestic consumers' efforts to reduce tariffs. (Incorrect)
148 If rent-seeking occurs, then a country's welfare losses from quotas will:
149 If a quota license is awarded to a domestic firm without an auction, it may generate bribes or lobbying spending to earn this revenue. Economists call this a(n) ____ activity.
150 Who collects quota rents when the government auctions quota licenses?
151 One way to fairly distribute quotas, while getting revenue for the government, is to: auction quotas in a public sale to the highest bidder. (True Answer Correct) conduct a lottery for quotas for the lucky winner. (Incorrect) allow Congress to apportion quotas among their constituents. (Incorrect) restrict quotas on the basis of handicap, gender, and other protected status. (Incorrect)

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