The main component of the monetary union created by the Treaty of Maastricht is a(n)
a. single currency.
b. gold standard.
c. bilateral barter system of currencies.
d. unified stock market.
a
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If the government of a country is maintaining an overvalued currency against the dollar, then the:
A) quantity of dollars demanded will exceed the quantity of dollars supplied in the foreign exchange market. B) quantity of dollars demanded will equal the quantity of dollars supplied in the foreign exchange market. C) quantity of domestic currency demanded will exceed the quantity of dollars supplied in the foreign exchange market. D) quantity of dollars supplied will exceed the quantity of dollars demanded in the foreign exchange market.
Moral hazard is:
A. when people engage in behavior that is considered highly desirable by the person who bears the cost of the behavior. B. when buyers and sellers have different information about the quality of a good or the riskiness of a situation. C. when buyers and sellers with the same information about the quality of a good or the riskiness of a situation agree to a somewhat shady deal. D. the tendency for people to behave in a riskier way or provide less effort when they do not face the full consequences of their actions.
A perfectly competitive firm in the short run determines its quantity supplied at various prices by using
a. the portion of its marginal cost curve rising above its average total cost curve b. the portion of its marginal cost curve rising above its average variable cost c. its average variable cost curve d. its average total cost curve e. the portion of its average variable cost curve rising above its average fixed cost curve
Which diagram below illustrates the effects on the peanut butter market, if severe flooding destroys a large portion of the peanut crop in the economy?
In the diagrams below, the subscript "1" refers to the initial position of the curve, while the subscript "2" refers to the final position after the curve shifts.
A. A
B. B
C. C
D. D