A fixed exchange-rate system in which most countries participate imposes price discipline on the countries.
Answer the following statement true (T) or false (F)
True
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Refer to Negative Externality. Suppose there are no transactions costs. Also suppose the externality is internalized when the damaged parties offer producers a bribe of $5 per unit to reduce their production. Coase's analysis indicates that social gain in this situation will equal
The following questions refer to the accompanying diagram, which shows the effects of a negative externality created by an industry's production. The equilibrium quantity in the absence of any attempt to internalize the externality is QE, and the optimal quantity according to a Pigovian analysis is QO.
a. area A + B + F.
b. area A + B + F - E.
c. area A + B + C + D + F + G + H.
d. area A + B + C + F + G.
Walmart wants to raise $250 million to finance the renovation of their retail stores, and the company wishes to raise the funds through indirect finance. Which of the following methods could it use?
A) It could sell $250 million in bonds. B) It could issue $250 million in stock. C) It could borrow $250 million from a bank. D) It could choose either A or B.
Think of the economy as a pie, where public choices influence both the size of the pie and how it is divided to various interests in society. Special-interest legislation makes the pie bigger, while legislation to create traditional public goods such as roads, schools, and the justice system leads to fights over the pie, causing some of it to fall on the floor and be lost
Indicate whether the statement is true or false
"As the price of apples goes up, the demand for apples goes down." The author of this statement
A) implies that price and demand are unrelated. B) uses the word "demand" when he should use the word "supply." C) uses the word "demand" when he should use the words "quantity demanded." D) implies that demand and price have a direct relationship.