A quota is
A) a tax imposed on imported goods.
B) a legal limit on the amount of a good that can be produced by foreign owners of a firm located in a host country.
C) a legal limit on the amount of a good that can be imported.
D) an agreement between two countries in which the exporting country voluntarily agrees to limit its exports to the importing country.
C
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Inflation must be high in Moscow because it is very expensive to live there
Indicate whether the statement is true or false
Refer to Figure 2-1. Point A is
A) technically efficient. B) unattainable with current resources. C) inefficient in that not all resources are being used. D) the equilibrium output combination.
If the United States experiences an economic boom, how will this affect the foreign exchange value of the U.S. dollar?
a. It will fall because other nations would be forced to raise their interest rates. b. It will fall because the United States will import more goods and services, leading to an increased demand for foreign currencies. c. It will rise because U.S. GDP would be rising faster than other countries. d. It will rise because the Fed will have to lower U.S. interest rates. e. It will rise because the United States will import more goods and services, leading to an increased demand for foreign currencies.
Fill in this table. Assume that fixed cost is $100.
