Fixed exchange rate regimes
A) existed prior to the nineteenth century but were then superseded by the gold standard.
B) lower the transactions costs of buying and selling goods and assets.
C) result in higher world interest rates.
D) were first established by the GATT in 1971.
B
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Air pollution is more dangerous to the public, but toxic waste generates more public uproar. Why?
a. Those exposed to the health hazard posed by the toxic waste site are usually less sure that exposure has occurred. b. Those exposed to the health hazard posed by the toxic waste site are usually more sure that exposure has occurred. c. Fewer people cause air pollution than toxic waste. d. Fewer people are affected by air pollution than by toxic waste. e. Toxic waste causes more illness and death than air pollution does.
The consumption function is drawn on a graph with disposable income on the horizontal axis without including investment. Assume investment is autonomous and is added to the consumption function. The effect is:
a. an upward adjustment in the vertical intercept b. no change in the adjustment in the vertical intercept. c. an increase in the slope of the consumption schedule. d. a decrease in the slope of the planned expenditure schedule.
Why is inflation unpopular?
a. It makes financial planning more difficult. b. It leads to shortages in the economy. c. It increases interest on loans. d. It leaves too much time for production.
Consider a medical breakthrough that led to the discovery of a simple microchip, which when inserted inside the human ear could prevent certain chronic diseases. The price elasticity of demand for that microchip would most likely be _____
a. highly elastic b. highly inelastic c. undefined d. negative only for high prices e. positive only for high prices