A key objective of the gold standard was to
A. create a fixed exchange rate system between countries.
B. allow nations to maintain their gold reserves.
C. create a flexible exchange rate system between countries.
D. allow nations to tax its citizens in gold.
Answer: A
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The learning curve indicates that
A) economies of scale are taking effect. B) repetition of various production tasks cause unit costs to decrease. C) workers must learn new skills in order to improve. D) it takes time to learn a new skill.
Most checkable deposits are insured up to $250,000 by
A. state banking commissions. B. the Federal Reserve Board. C. the U.S. Department of the Treasury. D. the Federal Deposit Insurance Corporation.
A nonmonetary opportunity cost is called a(n) ________, while a cost that involves spending money is called a(n) ________
A) accounting cost; explicit cost B) implicit cost; explicit cost C) accounting profit; economic profit D) normal rate of return; asset
Firms have inventories that they can draw down to meet an increase in demand. This will
A. increase the size of the multiplier, because firms will be able to respond more quickly to a change in demand. B. decrease the size of the multiplier, because output will not immediately respond to changes in demand. C. have no effect on the multiplier, because the MPC remains unchanged. D. either increase or decrease the multiplier, depending on the size of the MPC.