When the value of a currency is determined ________, the exchange rate system is defined as a floating exchange rate system
A) by its issuing government, with occasional readjustments in value
B) only by supply and demand
C) by its issuing government
D) mostly by supply and demand, but with occasional government intervention
B
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The rule that states that the marginal revenue product equal to price does not hold when there are more than two inputs.
Answer the following statement true (T) or false (F)
During Japan's economic slump in the early 1990s, monetary policy:
a. was highly effective at stimulating income. b. was caught in a liquidity trap as a result of high inflation and interest rates. c. was ineffective because of a liquidity trap caused by near zero interest rates. d. was never even attempted. e. was the cause of the slump.
To use an analogy that helps explain the ABCs of economic development: To build a skyscraper, you must first build the foundation. In order for an economy to create economic development, it must first develop a solid
a. network of resources b. production possibilities curve c. infrastructure d. dualist structure e. base for foreign investment and aid
Suppose that the equilibrium price in the market for widgets is $5 . If a law increased the minimum legal price for widgets to $6,
a. the resulting increase in consumer surplus would be larger than any possible loss of producer surplus. b. the resulting increase in consumer surplus would be smaller than any possible loss of producer surplus. c. any possible increase in producer surplus would be larger than the loss of consumer surplus. d. any possible increase in producer surplus would be smaller than the loss of consumer surplus.