The Germans and the French were compelled to keep Greece in the euro because
A. they had invested a large amount in the form of bailout packages to Greece.
B. they feared that their home currencies would be devalued if Greece opted out of euro.
C. they relied heavily on Greece for trade and feared that they would lose their trading partner.
D. they feared that the Greek exit would lead to a collapse of the entire euro system.
Answer: D
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If diplomas work efficiently in signaling productive capabilities to employers, the resulting equilibrium
A) will be a separating equilibrium. B) will be a pooling equilibrium. C) will always be inefficient. D) will never be efficient.
When both internal and external costs for using a scarce resource are included, then there is
A) an increase in the production of the good. B) a negative externality. C) an increase in the price of the good. D) a positive externality.
One big difference between tariffs and quotas is that tariffs:
a. stimulate international trade while quotas inhibit it. b. generate tax revenues while quotas do not. c. hurt domestic producers while quotas help them. d. raise the price of a good while quotas lower it.
As a component of GDP, consumption expenditures refers to purchases by consumers of currently produced goods and services.
Answer the following statement true (T) or false (F)