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If Government Decides to Control the Amount of a Good

Question 11

Multiple Choice

If government decides to control the amount of a good allowed to be transacted in a market,this will:


A) always result in an increase in efficiency in the market.
B) increase incentives for market participants to engage in black market activities.
C) result in the equilibrium quantity being produced if the quota is binding.
D) lead to more of the good being produced.

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