The optimal currency area involves a trade-off of reducing transaction costs but the inability to use changes in exchange rates to help ailing regions. If the US, Canada, and Mexico had one single currency (the Peso-Dollar) we would tend to see all of the following EXCEPT:
a. Even more intraregional trade of goods across the three countries.
b. Lower transaction costs of trading within North America.
c. A greater difficulty in helping Mexico as you can no longer deflate the Mexican peso.
d. Less migration of workers across the three countries.
e. An elimination of correlated macroeconomic shocks across the countries.
d
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A time series is
A) the length of a business cycle. B) a macroeconomic aggregate that does not lead or lag the business cycle. C) data that is subject to revision. D) a sequence of dated measurements.
The legal system provided by the government is necessary for the smooth working of markets because
A) it keeps criminals off of the streets. B) it defines and protects property rights. C) it is set up in the U.S. constitution. D) it ensures that producers maximize their profits.
Featherbedding refers to the practice of: a. disallowing members from joining labor unions
b. hiring lesser number of laborers than what is required. c. terminating employment without notice. d. hiring more laborers than what is necessary.
In macroeconomics, the connection between inputs and outputs for an economy is called a(n) _____
a. production possibility frontier b. aggregate production function c. isoquant curve d. consumption-possibility frontier