Acceptance of the euro by the member state implies:
a. Common monetary policy
b. Common fiscal policy
c. Common foreign policy
d. Common labor policy
A
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Imagine that the economy is at a point that is above both AA and DD, where both the output and asset markets are out of equilibrium. Which first action is TRUE?
A) The economy will stay at this level in the short run. B) The exchange rate will first drop to a point on the AA schedule. C) The exchange rate will first move to a point on the DD schedule. D) The AA-DD equilibrium will shift to the position of the economy. E) The exchange rate will first move left to a position on the AA schedule.
What are the major rationales for consumer protection in nonmonopolistic industries?
What will be an ideal response?
Which of the following is NOT among the statements that critics of prospect theory have made about it?
A. It is not necessary, since expected utility theory accounts rather well for most risky choices. B. The evidence reflects systematic mistakes that consumers might correct through experience and awareness. C. Instead of explaining behavioral puzzles, prospect theory merely summarizes them. D. Loss aversion has been proven to be false in many theoretical and experimental economic works.
If long-run costs are plotted on the vertical axis and the quantity of output is plotted on the horizontal axis, a line that is perfectly horizontal implies:
a. constant returns to scale. b. economies of scale. c. diseconomies of scale. d. inefficient use of capital. e. inefficient use of labor.