Dollarization is a policy action that
A) tries to stabilize the value of the local currency vs. the U.S. dollar.
B) adopts the currency of another country as the national medium of exchange.
C) mimics policy actions taken by the U.S. Federal Reserve.
D) outlaws the holding of foreign currencies other than the U.S. dollar.
B
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Which of the following is NOT among the statements that critics of prospect theory have made about it?
A. It is not necessary, since expected utility theory accounts rather well for most risky choices. B. The evidence reflects systematic mistakes that consumers might correct through experience and awareness. C. Instead of explaining behavioral puzzles, prospect theory merely summarizes them. D. Loss aversion has been proven to be false in many theoretical and experimental economic works.
Show graphically why economists refer to single-price monopoly market structure as inefficient.
What will be an ideal response?
The United States experienced a depression in which of the following decades?
A. the 1920s B. the 1940s C. the 1950s D. the 1970s
In Graph C, if P1 moved to P2 which of the following would most likely happen?
a. The price of leather would decrease.
b. The price of leather would decrease, but the quantity of leather would increase.
c. The price of leather would increase, but the quantity of leather would decrease.
d. The quantity of leather would increase.