Countries that use the euro as their currency face similar concerns as countries did during the years of the gold standard in that each are (were)
A) using a floating currency. B) unable to conduct fiscal policy.
C) unable to conduct monetary policy. D) using currency which is backed by gold.
C
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All of the following statements about the free market equilibrium output are equivalent except:
a. Total surplus is maximized. b. There is zero dead-weight loss. c. There are no allocations that a Pareto preferred. d. There is positive dead-weight loss.
Assume that the economy is in equilibrium when the real interest rate rises. Explain, step-by-step, how the components of expenditure adjust to bring the economy to its new equilibrium
What will be an ideal response?
The equation TR/Q is used to compute
A) total cost. B) average revenue. C) demand. D) marginal revenue.
Which of the following firms could raise prices and expect an increase in revenues?
(A) A firm whose product has an elasticity of 3.1. (B) A firm whose product has an elasticity of 1. (C) A firm whose product has an elasticity of 0.31. (D) All firms regardless of the elasticity of their products.