If a country chooses to have a monetary policy oriented toward domestic goals and a fixed exchange rate, then
A) it can have the freedom of international capital movements.
B) it cannot have the freedom of international capital movements.
C) it cannot balance its current account.
D) it cannot have fiscal policy oriented toward domestic goals.
E) it cannot control money supply growth.
B
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Refer to the table above, which gives five points on a nation's PPF. As we increase the production of X,
A) the output of Y increases. B) unemployment increases. C) the opportunity cost of each new unit of X increases. D) the opportunity cost of each new unit of X decreases.
During the Winter Olympics in Vancouver, some residents rented rooms to visitors. This behavior
A) helped reduce the shortage of hotel rooms caused by the high demand during the Olympics. B) reduced the demand for tickets to the Olympics since many local residents left town while they rented out space in their homes. C) hurt the hotel market in Vancouver in the long run because new hotels that should have been built were not built for the Olympics. D) raised the demand for hotel rooms in Vancouver and should have been prevented by the city of Vancouver.
The rate at which a consumer will exchange one good for another is called:
A. marginal utility. B. the marginal rate of transformation. C. the rate of substitutability. D. the marginal rate of substitution.
A sole proprietorship is
A) the easiest type of business to set up. B) the most difficult type of business to set up. C) the most expensive type of business to set up. D) the least profitable type of business to set up.