The current exchange rate system in Canada is best described as a
A) silver standard.
B) floating exchange rate system.
C) fixed exchange rate system.
D) gold standard.
Ans: B) floating exchange rate system.
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According to the expenditures approach, gross domestic product represents the sum of consumption spending, government spending, net exports, and net investment
a. True b. False Indicate whether the statement is true or false
Assume that an inferior good is produced in a perfectly competitive, increasing-cost industry with external diseconomies. The market is initially in long-run equilibrium. After all long-run adjustments are made, which of the following would occur in this market as a result of an increase in consumers' incomes?
a. The market price would remain unchanged; the market quantity would rise. b. The market price would rise; the market quantity would fall. c. The market price would remain unchanged; the market quantity would fall. d. Both the market price and the market quantity would fall. e. Both the market price and the market quantity would rise.
Suppose tax laws were reformed to encourage saving by increasing the rate of return on savings. Which of the following would be true?
a. Both the income effect and the substitution effect would tend to increase the amount of money a household saved. b. The income effect would tend to increase household savings while the substitution effect would tend to decrease household savings. c. The income effect would tend to decrease household savings while the substitution effect would tend to increase household savings. d. Both the income effect and the substitution effect would tend to decrease the amount of money a household saved.
The European Union membership criteria includes all of the following EXCEPT
A) the country must participate in free trade with all of its goods and services. B) the country must follow market-based economics. C) the country must formally adopt the EU-wide rules such as technical standards, environmental inspections, banking supervision, etc. D) the country must be a stable functioning democracy.