The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates.
B. currency convertibility observed in most developing countries.
C. domestic macroeconomic policy, arising from a shortage of international reserves.
D. macroeconomic policy resulting from IMF conditionality.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. When using a damage function, incremental benefits are measured as a vertical distance of total damages (TD) associated with a decrease in some contaminant (C). 2. The averting expenditure approach is favored by researchers because it can capture both existence and user value. 3. The contingent valuation method is so called because it is contingent upon the hypothetical market that serves as the context for the survey. 4. The benefit estimation method that relies on goods that are complements to environmental quality is the averting expenditure method. 5. A known problem associated with the averting expenditure method is jointness of production, which refers togoods that provide services beyond those that improve the environment.
Inflation rates during the years 1979-1981 were the highest the United States has ever experienced during peacetime
Indicate whether the statement is true or false
A free trade agreement plus a common set of tariffs toward non-members is called
A) a common market. B) a customs union. C) a free trade area. D) an economic union.
African-American worker Jackson earns $30,000 per year; white worker Johnson earns $40,000 per year. On the basis of this information we can conclude that:
A. it is not clear whether discrimination is present in this situation. B. there are no discriminatory forces at work in the labor market. C. Jackson is being discriminated against, but the dollar amount is unclear. D. Jackson is being discriminated against in the amount of $10,000 per year.