Which of the Following Is True of a Quota in a Competitive

Multiple Choice

Which of the following is true of a quota in a competitive market?

A) A quota increases total surplus as the quantity produced and consumed in the domestic market increases.
B) A quota is a trade policy used to promote greater efficiency in production within world markets.
C) A quota reduces the welfare of domestic consumers more than it increases the welfare of producers.
D) A quota is imposed in a competitive market to increase total world output of goods and services.