Studies using the gravity model have found that countries that have a common currency trade more with each other.
Answer the following statement true (T) or false (F)
True
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The figure above shows the demand and supply of dollars in the foreign exchange market. At a price of 2.40 Brazilian reals per dollar
A) there will be a shortage of dollars. B) $40 billion dollars will be demanded. C) $40 billion dollars will be supplied. D) there will be a surplus of dollars.
Consider the monopolist depicted in the figure above. The profit maximizing level of output for a single-price monopolist is
A) 7. B) 11. C) 13. D) 22.
The IMF agreement forced the U.S. to exchange gold for dollars at what price?
A) $25/ ounce B) $35/ ounce C) $45/ ounce D) $55/ ounce E) $20/ ounce
All of the following are reasons for economies of scale EXCEPT
A) diminishing marginal product. B) specialization. C) dimensional factors. D) more efficient production equipment.