The central feature of the Bretton Woods system was
A. the use of an adjustable pegged exchange-rate regime.
B. official encouragement for one-way speculative gambles.
C. a prohibition against the use of exchange controls.
D. the use of a floating exchange-rate regime.
Answer: A
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Assume the demand schedule for cookies is downward sloping. If the price of cookies falls from $2.50 to $2.25 per dozen: a. the demand for cookies will fall
b. the demand for cookies will rise. c. a larger quantity of cookies will be demanded. d. a smaller quantity of cookies will be demanded.
Coal produced by strip mining leaves the area that has been mined unusable. To restore the area to its original state costs approximately $10 for every ton mined. Using the coal to generate electricity causes air pollution. To outfit the electric power plant with pollution control devices costs another $10 per ton. The social cost of coal-fired electricity then includes
a. private cost plus the externality costs associated with mining b. private cost plus the externality costs associated with pollution control c. the externality costs associated with mining and pollution control d. private cost plus the externality costs associated with mining and pollution control e. just the private cost because the externality costs are incorporated in it
Goods that are consumed over a short period
What will be an ideal response?
Domestic firms operating abroad may find it economically beneficial to adopt environment-friendly standards because
A) foreign nations may be upset if firms do not use the environment-friendly technology. B) the least-cost strategy usually involves the adoption of one set of environment-friendly technology rather than multiple standards. C) they may be forced to replace the old technology whenever the foreign country experiences positive economic development. D) their environment-unfriendly technology may be replaced by foreign-based technology.