Suppose Mexico and the United States are on the gold standard. If there is a half an ounce of gold in the dollar, and one quarter an ounce of gold in the peso, then the exchange rate is

A) $0.50 = 1/2 peso.
B) $1 = 1/4 peso.
C) $1 = 2 pesos.
D) $1 = 4 pesos.
E) $1 = 1/2 peso.


C

Economics

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When a positive externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.

A. external costs are necessarily greater than private costs; government B. social costs equal private costs; no government C. social costs are less than private costs; government D. social costs are greater than private costs; government E. none of the above

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Price floors are only effective below the market equilibrium

a. True b. False Indicate whether the statement is true or false

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Refer to Figure 1.7. Which of the following points show unemployment of resources above the normal rate?

A. N. B. H. C. D. D. J.

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Use the above figure. At an output equal to "Q" the total cost for the firm will be the area

A. OQEB. B. OQBC. C. OQDC. D. OQFA.

Economics