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
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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
Price floors are only effective below the market equilibrium
a. True b. False Indicate whether the statement is true or false
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.
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.