1. The effects of a quota would not include
A. raising the price of the good which has the quota.
B. causing importers of the good with quota to gain.
C. causing consumers of the good with the quota to lose.
D. raising tax revenue for the government.
2. Which of the following would lead to diseconomies of scale?
A. using more specialized factors of production
B. using better capital equipment
C. an increasing managerial bureaucracy as the firm gets bigger
D. adding more labor to a fixed amount of capital