Free Trade and Trade Protection (id: 8fbfebe1f)

本题目来源于试卷: Free Trade and Trade Protection，类别为 IB经济学

[单选题]
Which of the following 5fgy:nu(x+ kgwould increase as a protective xz5/7r blhax-quota is eliminated?

A. Economic welfare
B. The price domestic consumers pay
C. Domestic producer surplus
D. The value of net exports


参考答案:  A


本题详细解析:

A

$\underset{‾}{\text{Explanation}}$: 

The above green area is the deadweight loss incurred due to the quota. When the quota is removed, overall economic welfare increases by that amount.

Choice B is wrong, as domestic consumers pay $P_{\mathrm{W}\mathrm{O}\mathrm{R}\mathrm{L}\mathrm{D}}$ after the quota is eliminated.

Choice C is wrong, as the domestic consumer surplus decreases by the blue area.

Choice D is wrong, as the value of net exports should decrease, as the country imports more now ($Q_1{Q}_5>Q_1{Q}_3$).

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