According to Richard Baldwin, studies indicating massive increases in trade resulting from currency unions are:
A) biased because of use of data from rich countries.
B) generally applicable to the euro.
C) underestimating the impact of the euro on intra-European Union trade.
D) not the result of lowering the transaction costs for trade within the euro area.
Ans: D) not the result of lowering the transaction costs for trade within the euro area.
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A tax meant to counter the effect of a negative externality is called:
A. a Coase tax. B. a Pigovian tax. C. an external tax. D. a social benefit tax.
Richstone Bakery reduces the price of wheat bread from $2 to $1 and finds that quantity demanded increases from 100 to 120 loaves. Richstone calculates that the price elasticity of demand for wheat bread is (approximately)
a. 0.00 b. 0.30 c. 5.00 d. 10.5 e. 2.00
The figure above shows the supply curve for soda. The market price is $1.00 per soda. The marginal cost of the 20,000th soda is
A) $0.00. B) $0.50. C) $1.00. D) more than $1.00. E) None of the above answers is correct.
Which of the following institutions is responsible for check processing?
a. U.S. Department of the Treasury b. Comptroller of the Currency c. Federal Reserve d. Federal Deposit Insurance Corporation