Which one of the following factors would reduce the quantity of money balances that households would want to hold?
a. higher prices
b. a rise in inflation
c. higher nominal interest rates
d. an expansion in nominal income (nominal GDP)
C
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Compensation of losers from opening an economy to international trade is not common because:
A) losers don't lose so much that they would require to be compensated. B) the loss is made up through the availability of a wider array of goods and services. C) it is difficult for governments to carry out such compensation policies. D) the government will have to transfer huge amounts of money to compensate losers.
The currency adopted by most countries in Western Europe is referred to as the
A) euro. B) pound. C) Eurodollar. D) yen.
The tax burden for a good falls largely on _____
a. the producers who have a perfectly elastic supply of the good b. the consumers who have a less elastic demand for the good c. the consumers who have a perfectly elastic demand for the good d. the producers who have an unit elastic supply of the good
The long-run average cost curve shows
A) the lowest average cost of producing every level of output in the long run. B) where the most profitable level of output occurs. C) the average cost of producing where diminishing returns are not present. D) the plant size or scale that the firm should build.