Under a fixed exchange rate system, the exchange rate
a. is equal to one.
b. fluctuates as the price of gold fluctuates.
c. is fixed and interest rates must vary in response to balance of payment movements.
d. can periodically change as economic conditions change.
C
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If the world price of steel is greater than the U.S. "no-trade" domestic equilibrium price of steel, the United States:
a. will not produce steel. b. will demand steel from the rest of the world. c. will supply steel to the rest of the world. d. will not trade steel. e. will have a shortage of steel in the domestic market.
A Gini coefficient of one indicates perfect income equality
Indicate whether the statement is true or false
In the long run, a monopolistically competitive firm produces at efficient scale
a. True b. False Indicate whether the statement is true or false
The nineteenth-century British economist Thomas Malthus argued that the law of diminishing returns implied that
A. raw materials would eventually run out. B. eventual misery would befall the human race. C. technological change would grow at an increasing pace. D. capital would increase relative to labor.