Under the Bretton Woods agreement,
a. nations could not adjust their exchange rates relative to the dollar for any reason
b. exchange rates were based on a market basket of European currencies plus the dollar
c. the United States stood ready to convert foreign holdings of dollars into gold at a fixed rate of $35 per ounce
d. the international monetary system operated exactly like the gold standard of pre-World War II years
e. gold played no role in the international monetary system
C
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The wage rate is the opportunity cost of
A) leisure. B) consumption. C) working overtime. D) working.
Refer to Figure 24-3. Which of the points in the above graph are possible short-run equilibria but not long-run equilibria? Assume that Y1 represents potential GDP
A) A and B B) A and C C) C and D D) B and D
The balance of payments is
a. the equilibrium result when two countries achieve purchasing power parity. b. an account that records changes in exchange rates between two countries. c. an account that records all economic transactions between a country and all other countries, usually within a year. d. all of the above. e. none of the above.
If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees, we would expect the labor-demand curve to shift to the:
A. left and wages would rise. B. right and wages would rise. C. left and wages would decrease. D. right and wages would decrease.