Explain the costs and benefits of a single currency
What will be an ideal response?
Benefits include the reduction of transactions costs from currency conversion and reduction of exchange rate uncertainty. Costs include the lack of ability to pursue independent monetary policies, and the lack of ability to use the exchange rate as a buffer against external shocks.
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Discrimination that occurs when people's preferences cause them to discriminate against a certain group is referred to as:
A) group discrimination. B) special interest group discrimination. C) cultural discrimination. D) taste-based discrimination.
Before entering, fixed cost associated with the industry in question are sunk costs for
A) the incumbent firm. B) the outside firm. C) both firms. D) neither firm.
An outcome is said to be efficient if an economy is conserving the largest possible quantity of its scarce resources while still meeting the basic needs of society
a. True b. False Indicate whether the statement is true or false
Which of the following industrial countries experienced a relatively slower growth of real GDP in the latter half of the 1990s?
a. Canada b. United States c. Italy d. France e. Japan