Why does the GG schedule have a positive slope?
A) The monetary efficiency gain a country gets by joining a fixed exchange rate area falls as its economic integration with the area increases.
B) The monetary efficiency gain a country gets by joining a fixed exchange rate area rises as its economic integration with the area decreases.
C) The monetary efficiency gain a country gets by joining a fixed exchange rate area rises as its economic integration with the area increases.
D) The monetary efficiency gain a country gets by joining a floating exchange rate area rises as its economic integration with the area increases.
E) The monetary efficiency gain a country gets by joining a fixed exchange rate area is constant after their integration into the area.
C
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Because the United States purchases more cars, stereos, and other goods from Japan than Japan purchases from the United States, it is often said that the United States has a "trade deficit" with Japan. Does this mean that the U.S. balance of payments is running a deficit? How would you more accurately characterize the effect that trade with Japan has on the balance of payments?
Because there are many sellers in monopolistic competition, sellers often have ______ control over the approach of competing sellers.
a. little b. significant c. varying d. average
Which of the following is an example of the free-rider problem?
A. a fast food employee who is provided food at work B. a student who refuses to buy a college catalog C. a neighbor who refuses to help pay for a street light that is intended to help reduce crime D. a law enforcement officer who receives a uniform from the police department
Suppose there was a debate regarding how to spend $1 billion in newly found revenues in the budget. Suppose the most liberal Democrat suggests an increase to Food Stamp (SNAP) allotments. Suppose the most conservative Republican suggests an increase in defense spending. Each is arguing that their plan will get the most good for the money. What is going on here?
A. Neither are using marginal analysis. B. Only the Republican is using marginal analysis. C. Only the Democrat is using marginal analysis. D. Both are employing marginal analysis, just from different perspectives.