A lawn mower is what type of good?

Multiple Choice

• Can be either a capital or a consumer good.
• Capital good.
• Consumer good.
• Is a service rather than a good.

All of the following, except one, are problems that may occur as the result of imposing a production quota? Which is the exception?

Multiple Choice

• The quota is likely to be higher than the present equilibrium quantity.
• There is an incentive for farmers to cheat and produce more than their allotted quotas.
• Consumers will pay a higher price than without the quota.
• Many producers are likely to think that their quota is too low and their neighbours' too high.