One of the chief advantages of exchange rate pegging is that ________
A) a country is able to pursue an independent monetary policy over the course of the business cycle
B) it can be an effective means of reducing inflation
C) the currency can be used to promote export growth
D) it allows the monetary authorities to actively respond to the problems of inflation and unemployment
B
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A tax is imposed on wine. Sellers will bear the full burden of this tax if the: a. demand for wine is perfectly inelastic
b. price elasticity of demand for wine equals 1.0. c. demand for wine is unit elastic. d. supply for wine is perfectly inelastic.
An unanticipated increase in inflation will:
a. redistribute income from employers to workers. b. redistribute income from lenders to borrowers. c. redistribute income from borrowers to lenders. d. do none of the above.
According to the law of diminishing marginal utility, which of the following is likely to be true? a. Bruce enjoys his first slice of pizza more than his fifth
b. Steve enjoys his third slice of pizza more than his second. c. Tony enjoys his second slice of pizza as much as his fifth. d. Ethan enjoys two slices of pizza as much as one slice of pizza.
Into what four categories do economists divide factors of production?
a. land, labor, capital, and entrepreneurship b. land, labor, money, and entrepreneurship c. resources, labor, capital, and entrepreneurship d. resources, labor, money, and entrepreneurship