What are the biggest advantages the U.S. has over the EU in terms of being an Optimum Currency Area?
A) low mobility of labor, higher labor productivity, lower level of intra-regional trade
B) high unionization of U.S. Labor force
C) high mobility of labor force, more transfer payments between regions
D) higher uniformity of population's taste in consumption
E) more specialized labor force and natural resource advantages
C
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How does a currency drain affect the money multiplier?
What will be an ideal response?
A firm sells 20 units of a good at a price of $5 per unit. If the average cost of production of the good equals $3 per unit, the firm's revenue is:
A) $40. B) $60. C) $100. D) $120.
When solving collective action problems, a major barrier is the free rider problem, which occurs when actors
a. reap the benefits without contributing any effort. b. harvest the resources of other nations. c. increase their consumption in a sudden and dramatic way. d. are forced to live with control and domination.
According to the text, The American Recovery and Reinvestment Act of 2009:
A. remains hotly debated whether it was successful or not. B. is known as the most effective legislation ever passed in U.S. history. C. was unsuccessful. D. was successful.