Consider a country Atlantica, using dollars ($) as its currency. If this country sets a price for gold, and then issues currency such that the amount in circulation is equivalent to the value of gold held in reserve, it is said to be the following:
a. an exchange standard.
b. a gold standard.
c. a reserve currency standard.
d. a crawling peg standard.
e. a currency board standard.
b
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In the above figure, when the quantity equals 400 pretzels
A) consumers are willing to pay $2 for the 400th pretzel. B) producers are willing to supply 400 pretzels for $3. C) producers are willing to supply 400 pretzels for $2. D) the marginal benefit is greater than the marginal cost.
The market demand curve for labor
A) is the same as the market demand curve for the product labor produces because it is a derived demand. B) is determined by adding up the quantity of labor demanded by each firm at each wage, holding constant the other variables that affect the willingness of firms to hire workers. C) is perfectly inelastic because there is a finite number of workers in the market for labor. D) is determined by adding up the demand for labor by each firm at each wage, holding constant the other variables that affect the willingness of firms to hire workers.
If the market price is $2 and a perfectly competitive firm is producing 1,000 units and the marginal cost to produce the 1,000th unit is $2, which of the following is true?
A) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is positive. B) The firm is not maximizing profit. C) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is negative. D) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is zero.
If money is used as a mechanism to hold purchasing power for a period of time it is functioning as a:
A. standard of value. B. store of value. C. medium of exchange. D. unit of account.