An item's ability to serve as money does not depend on its own market value or _______________
Fill in the blank(s) with the appropriate word(s).
Answer: the backing of precious metal
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Swiss experience in the 1980s evidences the ________
A) effectiveness of targeting monetary aggregates B) need for discretion in the face of structural changes in the economy C) value of fiscal policy over monetary policy D) ascendancy of flexible exchange rate regimes over fixed exchange rate systems
If both a monopoly and a competitive market with the same marginal cost would produce a quantity that is greater than the social optimum in a market because of externalities, then
A) welfare is greater under monopoly. B) welfare is greater under competition. C) welfare is the same for both market structures. D) the social optimum must be zero.
Following Alfred Nobel's will, there are five Nobel Prizes awarded each year. These are for outstanding achievements in Chemistry, Physics, Physiology or Medicine, Literature, and Peace
In 1968, the Bank of Sweden added a prize in Economic Sciences in memory of Alfred Nobel. You think of the data as describing a population, rather than a sample from which you want to infer behavior of a larger population. The accompanying table lists the joint probability distribution between recipients in economics and the other five prizes, and the citizenship of the recipients, based on the 1969-2001 period. Joint Distribution of Nobel Prize Winners in Economics and Non-Economics Disciplines, and Citizenship, 1969-2001 U.S. Citizen (Y = 0) Non= U.S. Citizen (Y = 1) Total Economics Nobel Prize (X = 0) 0.118 0.049 0.167 Physics, Chemistry, Medicine, Literature, and Peace Nobel Prize (X = 1) 0.345 0.488 0.833 Total 0.463 0.537 1.00 (a) Compute E(Y) and interpret the resulting number. (b) Calculate and interpret E(Y =1) and E(Y =0). (c) A randomly selected Nobel Prize winner reports that he is a non-U.S. citizen. What is the probability that this genius has won the Economics Nobel Prize? A Nobel Prize in the other five disciplines? (d) Show what the joint distribution would look like if the two categories were independent. What will be an ideal response?
Possible benefits of a monopoly include which of the following (choose all that apply)? a. a savings of fixed costs because only one firm supplies quantity demanded
b. greater opportunities for research due to long-run positive economic profits. c. government regulation is more effective because the firm is "too big to fail.". d. goods and services are provided at a lower price than under perfect competition because of a monopoly's decreasing average cost curve.