Only two exchange rate regimes can be considered hard pegs. These are:
A. flexible exchange rates and currency boards.
B. dollarization and managed floating.
C. currency boards and dollarization.
D. the gold standard and inflation targeting.
Answer: C
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A firm's ______ are costs that increase as quantity produced increases. These costs often show ______ illustrated by the increasingly steeper slope of the total cost curve.
A. fixed costs; opportunity costs B. variable costs; diminishing marginal returns C. fixed costs; technological changes D. variable costs; constant returns to scale
Refer to the World View article titled "North Korea's Food Shortage Grows." On a production possibilities curve between private and public goods, a decrease in military spending in an effort to increase food production could be represented as
A. A movement along the production possibilities curve toward more public goods. B. A movement along the production possibilities curve toward more private goods. C. A shift inward of the production possibilities curve. D. A shift outward of the production possibilities curve.
Suppose firm X implements a new method for extracting copper from copper-bearing ore. This is an example of:
A. product innovation. B. process innovation. C. economics of scale. D. the inverted-U theory.
Recall the Application about how having car insurance affects driving behavior to answer the following question(s).Recall the Application. The idea that an insured driver, who bears less than the full cost of a collision, will drive less carefully than an uninsured driver is an example of:
A. asymmetric information. B. adverse selection. C. moral hazard. D. a thin market.