If a country's international reserves are decreasing, then its exchange rate is ________ and there is a balance-of-payments ________.
A. undervalued; surplus
B. undervalued; deficit
C. overvalued; surplus
D. overvalued; deficit
Answer: D
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Under the Bretton Woods system, international debts were settled in:
a. gold. b. U.S. dollars. c. British pounds. d. silver. e. German marks.
Are hurt more by unemployment.
A.men B. youth C. uneducated D. all of these!
Which one of the following states a central element of the economic way of thinking?
a. Scarce goods are priceless. b. Incentives matter--human choice is influenced in predictable ways by changes in personal costs and benefits. c. The realism of the assumptions is the best test of an economic theory. d. When deciding how to allocate time, the concept of opportunity cost is meaningless.
The notion that specialization in goods that one can produce at a low opportunity cost will make it possible for trading partners to produce a larger joint output is called
a. the law of absolute advantage. b. the law of comparative advantage. c. the law of production possibilities. d. the exchange maximum principle.