Gresham's Law states that:
a. Good money tends to drive bad money out of circulation.
b. Virtual and electronic money tends to drive physical money out of circulation.
c. Bad money tends to drive good money circulation.
c. In times of financial instability, nations should "gresham," which means to back their currencies by precious metals.
d. In times of financial instability, commodity-backed money tends to drive electronic and virtual currencies from circulation.
.C
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Under perfect capital mobility, an increase in world interest rates will
a. increase income and reduce domestic interest rates. b. increase income. c. increase income and lead to a balance of payment deficit. d. increase income and lead to a balance of payment surplus.
If the MRP of labor in a firm is $67, and the MLC equals $56, what would you advise the firm to do?
a. Stay at its current output level. b. Hire additional workers. c. Raise prices. d. Reduce employment. e. Reduce the wage rate.
Refer to the information provided in Figure 33.2 below to answer the question(s) that follow.
Figure 33.2Refer to Figure 33.2. The opportunity cost of 1 ________ is 4 ________ in the United States and 1.5 ________ in England.
A. car; cars; trucks B. car; trucks; trucks C. truck; cars; cars D. truck; trucks; cars
Marginal cost can be defined as the:
A. Change in total fixed cost resulting from one more unit of production B. Change in total cost resulting from one more unit of production C. Change in average total cost resulting from one more unit of production D. Change in average variable cost resulting from one more unit of production