Which of the following statements about quotas is correct?
a. They benefit domestic consumers through lower prices.
b. They benefit domestic producers through higher prices.
c. They raise world output.
d. They cause outward shifts in the domestic and foreign production possibilities frontiers.
e. They benefit domestic producers through increased competition that stimulates innovation.
B
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Which of the following is the most sensitive to interest rate changes?
a. The demand for non-durable goods. b. The demand for inexpensive goods. c. The demand for durable goods. d. The demand for necessities. e. The demand for services.
IBM buys treasury bonds from the UK as part of its investment portfolio. This is an example of:
A. importing. B. foreign direct investment. C. exporting. D. foreign portfolio investment.
The quantity demanded of a product increases as
A) the price of the product rises. B) the price of the product falls. C) consumer income rises. D) the prices of other products fall.
Most economists believe that the CPI overstates the actual changes in prices while the chain index for GDP understates them
Indicate whether the statement is true or false