Which of the Following Is NOT a Disadvantage of Controls

question 84

Multiple Choice

Which of the following is NOT a disadvantage of controls on capital outflows?

• A)The controls may lead to excessive risk taking by the domestic banks.
• B)They are seldom effective during a crisis.
• C)Capital flight may increase after they are put in place.
• D)Controls often lead to an increase in government corruption.

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Definitions:

Pure Monopolist

A sole producer in a market with no close substitutes for the product, allowing for the control of price.

Marginal Revenue

The supplementary earnings obtained from the sale of one more unit of a product or service.

Revenue Curves

Graphs showing the relationship between the sales volume and the revenue generated from those sales.

Elastic Portion

The segment of a demand curve where the quantity demanded changes significantly as a result of price changes, indicating high price elasticity of demand.