All of the following are true regarding a production quota EXCEPT:
A. a production quota imposes limits on the quantity that individual firms can produce.
B. a production quota is a way to raise prices without causing the overproduction that occurs under a price support program.
C. a production quota places limitations on supply.
D. a production quota does not lead to a deadweight loss.
D. a production quota does not lead to a deadweight loss.
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When the exchange rate between the U.S. dollar and the euro changes from 1.07 euros per dollar to 0.93 euros per dollar, then the
A) U.S. dollar has depreciated against the dollar. B) U.S. dollar has depreciated against the euro. C) euro has depreciated against the dollar. D) U.S. dollar has appreciated against the euro. E) euro has depreciated against the euro.
The collapse of the Bank of Credit and Commerce International, BCCI, showed the difficulty of international banking regulation. BCCI operated in more than ________ countries and was supervised by the small country of ________
A) 70, Luxembourg B) 100, Monaco C) 70, Monaco D) 100, Luxembourg
When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information b. decisions are being moved from those with stronger incentives to make good decisions c. decisions are being moved from those with more of the relevant information d. decisions are being moved from those with weaker incentives to make good decisions
If a supply curve shifts rightward along a downward sloping demand curve
a. the quantity supplied will increase b. the quantity supplied will decrease c. it makes no sense to talk about a change in quantity supplied d. the quantity demanded will decrease e. the price will increase