Which of the following helps to determine a currency's international role as the dominant reserve currency?
A) amount of seigniorage
B) policy goals of national monetary authorities
C) size of the domestic economic activity relative to international trade
D) All of the above
D
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Answer the following statement(s) true (T) or false (F)
1. The travel cost method estimates benefits based on the substitutability of a natural resource and its recreational value. 2. A disadvantage of the travel cost method is that it estimates only existence value and not user value. 3. In modeling the travel cost method, the estimated benefit of improving the environmental quality of a natural resource is captured by the change in consumer surplus associated with a decrease in demand for that resource 4. The hedonic price method is based upon the premise that goods and services are valued for their individual attributes. 5. Among the advantages of the hedonic price method is that data on a product’s characteristics are readily available.
The larger the marginal rate of substitution, the larger is the amount of one good that the consumer is willing to give up in exchange for another good and still remain at the same level of satisfaction
Indicate whether the statement is true or false
Suppose the GDP deflator in the United States is 125 and the GDP deflator in Japan is 100. Also assume the United States has trade barriers on Japanese goods in the form of quotas
What does this imply about the exchange rate of yen per dollar under the theory of purchasing power parity in the long run? A) The exchange rate of yen per dollar will be equal to 1.25. B) The exchange rate of yen per dollar will be greater than 0.8. C) The exchange rate of yen per dollar will be less than 0.8. D) The exchange rate of yen per dollar will be equal to 0.8.
Seeking profits without producing anything
A) is called rent-seeking B) is illegal C) usually involves government D) all of these choices