After Britain returned to the Gold Standard in the 1920s, the British pound was
A) undervalued, contributing to a long period of inflation.
B) undervalued, contributing to a long period of recession.
C) overvalued, contributing to a long period of inflation.
D) overvalued, contributing to a long period of recession.
E) value about right, leading to a long period healthy growth with almost no inflation.
D
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The degree of a factor's specificity is directly related to
A) the amount of time required to redeploy the factor to a different industry. B) the cost of the factor as a proportion of the long-run total cost of production. C) the mobility of the factor, with more mobile factors having more specificity. D) technology differences between two countries, with a more advanced technology resulting in more factor specificity. E) factor quality, with higher quality factors having a higher level of specificity.
A monetary policy strategy that uses a fixed exchange rate regime that ties the value of a currency to the currency of a large, low inflation country is called ________ targeting
A) exchange-rate B) currency C) monetary D) inflation
Since the War on Poverty was started in 1965, the United States has spent more than $12 trillion on income maintenance programs. The effect has been to
A) reduce poverty levels substantially. B) reduce poverty levels moderately. C) have virtually no effect on poverty levels. D) increase poverty substantially.
Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?
a. Why do prices in general rise by more in some countries than in others? b. Why do wages differ across industries? c. Why do national production and income increase in some periods and not in others? d. How rapidly is GDP currently increasing?