The gold standard system was:
A) a floating exchange rate system.
B) a fixed exchange rate system, in which the country's currency was fixed relative to a pound of gold.
C) a fixed exchange rate system, in which the country's currency was fixed relative to an ounce of gold.
D) only used by the United States.
Answer: C) a fixed exchange rate system, in which the country's currency was fixed relative to an ounce of gold.
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According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. $12 gets transferred from consumer surplus to producer surplus.
B. area C is lost consumer surplus due to fewer transactions taking place.
C. area E is lost producer surplus due to fewer transactions taking place.
D. All of these are true.
The benefits from research and development activities
A. are limited to the firms investing in similar research and development projects. B. are limited to the nation in which the research and development is taking place. C. are limited to the firm winning a patent. D. spill over to others, including foreign residents.
The last year that our current account deficit was close to 0 was __________.
Fill in the blank(s) with the appropriate word(s).
What is the euro and why has it been created? How has its value changed relative to the U.S. dollar since its inception?
What will be an ideal response?