A quota raises the price of the product on which the quota has been placed, decreases consumers' surplus, increases producers' surplus, and generates tariff revenue for the government
Indicate whether the statement is true or false
False
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Everything else remaining the same, in the foreign exchange market, which of the following increases the supply of U.S. dollars?
A) The U.S. interest rate rises. B) The U.S. interest rate differential increases. C) The expected future exchange rate rises. D) The European interest rate rises. E) The exchange rate falls.
For the poorest countries, a slight improvement in economic growth will, over time, ______.
a. have no impact on the standard of living b. cause them to become richer than today’s richest countries c. have no impact on their level of wealth d. improve the standard of living
Give a hypothetical example of a company that uses physical differences, prestige, location, and service to differentiate its product.
What will be an ideal response?
The short position in a futures contract is the party that will:
A. deliver a commodity or financial instrument to the buyer at a future date. B. accept the risk. C. benefit from increases in price of the underlying asset. D. suffer the loss.