Refer to Figure 19-8. The equilibrium exchange rate is originally at A, $1.25/euro. Suppose the European Central Bank pegs its currency at $1.00/euro
Speculators expect that the value of the euro will rise and this shifts the demand curve for euro to D2. If the European Central Bank abandons the peg, the equilibrium exchange rate would be
A) $1.00/euro. B) $1.25/euro. C) $1.50/euro. D) $1.75/euro.
C
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Private disposable income equals
A) GNP - taxes + transfers + interest. B) NNP - taxes + transfers + interest. C) national income - taxes + transfers + interest. D) national income - taxes - transfers + interest.
The features of the M-Form of firm organization are
a. divisions have difficulty responding to market changes b. it is easier to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained
Someone using the reasoning process consistent with the impartial spectator tool would argue that the minimum wage is a:
A. good policy because, based on one's reasoned judgment, it would lead to the greatest good for the greatest number. B. bad policy because, based on one's reasoned judgment, it interferes with the market. C. good policy since based on one's reasoned judgment, it will raise one's wage. D. bad policy since, based on one's reasoned judgment, it will cause unemployment.
A fishery collapse occurs when the:
A. Fishery goes out of business B. Fishery is taken over by a government agency C. Fishery's population is harvested at a higher rate than it reproduces D. Fishery's population reproduces at a higher rate than it's harvested