A country on a gold standard was able to maintain people's confidence in the value of its currency by:
a. printing more and more paper money.
b. restricting international exchange of goods and services.
c. ensuring the convertibility of paper money into gold.
d. maintaining a fixed stock of foreign currencies.
e. ensuring balance of payment surplus.
c
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The formal and informal rules governing the organization of a society on the whole, including its laws and regulations, are referred to as:
A) organizational structure. B) religious norms. C) cultural scenario. D) institutions.
Social Security is an example of a(n)
a. annuity b. public payment c. exclusive payment d. merit payment e. transfer payment
For most firms, the major difference between accounting profit and economic profit is that
a. explicit and implicit costs are included in the accounting profit while only explicit costs are included in economic profit. b. accounting profit omits the salaries of managers, and therefore, it is generally greater than economic profit. c. accounting profit is based on opportunity cost, whereas economic profit is based on market transactions. d. accounting profit does not consider the opportunity cost of the firm's equity capital and, therefore, generally overstates economic profit.
In the absence of environmental protection laws, firms pollute because:
A. business owners do not believe that pollution is a problem. B. controlling emissions costs money, thereby reducing profits. C. the cost pollution imposes on society is small relative to the cost of reducing pollution. D. business owners follow different norms than do environmentalists.