The effect of a quota is to
A. increase quantity supplied and increase price.
B. increase demand for the good and increase price.
C. increase quantity supplied and lower price.
D. reduce quantity supplied and raise price.
Answer: D
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If an economy is allocatively efficient, it must be producing
A) beyond its production possibilities frontier. B) inside its production possibilities frontier. C) on its production possibilities frontier. D) the goods and services that are the most expensive. E) the goods and services that are the least expensive to produce.
A disadvantage of virtual banks (clicks) is that
A) their hours are more limited than physical banks. B) they are less convenient than physical banks. C) they are more costly to operate than physical banks. D) customers worry about the security of on-line transactions.
In the neoclassical growth model, if two countries are exactly the same but one has a lower population growth, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and higher per capita output growth in the steady state. b. the same output and capital-to-labor ratio, but higher per capita output growth in the steady state. c. higher output, a higher capital-to-labor ratio, and the same per capita output growth in the steady state. d. higher output, the same capital-to-labor ratio, and the same per capita output growth in the steady state.
A firm could experience diseconomies of scale if
a. One of its inputs is fixed b. Marginal costs are rising c. All of its inputs are variable d. Both A & B