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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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.
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