Under a pure gold standard
A. all currencies are defined in terms of gold and these rates are fixed.
B. the dollar is tied to gold and all other currencies are fixed relative to the dollar.
C. all foreign exchanges involve gold for goods and services.
D. all trade involves government agencies.
Answer: A
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The quantity effect of a price decrease by a monopolist is based on:
A) the Law of Supply. B) the Law of Demand. C) the Law of Increasing Returns. D) the Law of Diminishing Returns.
Of the following market structures, which has the fewest number of firms competing against each other?
A) monopolistic competition B) oligopoly C) perfect competition D) Both answers A and C are correct.
In the above figure, a regulation requiring average cost pricing would force the firm to produce at output level
A) Q1. B) Q2. C) Q3. D) Q4.
Which of the following is a reason why the growth rates of low-income countries can be higher than those of high-income countries?
a. Lower-income countries can observe the experience of those countries that have grown more quickly and can learn from it. b. Lower-income countries have a comparative advantage in the production of labor-intensive goods, which have higher terms of trade than capital-intensive goods. c. Lower-income countries have an abundant supply of rich natural resources. d. Lower-income countries can produce goods more cheaply than high-income countries as the average wage rate in low-income countries is lower than that in high-income countries.