Discuss the trends and implications of the following graph, especially with respect to the official start of the EMU on January 1, 1999
What will be an ideal response?
The extent of intra-EU country trade has fluctuated since the mid-1980s, but the pronounced growth of this trade after the start of the EMU suggests that the adoption of the single euro currency may have encouraged commerce among EU countries, moving them closer to forming an optimum currency area.
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After full adjustment to a price change has occurred, the absolute price elasticity of demand for an item is equal to 1. In the short run, the absolute price elasticity of demand for the item was probably
A) less than 0. B) greater than 0. C) less than 1. D) greater than 1.
How do buyers and sellers benefit from a contract?
"As income rises, the demand for most goods also rises." This statement
a. is inconsistent with the law of demand b. suggests that many goods are inferior goods c. shows that the quantity demanded is inversely related to price d. suggests that most goods are normal goods e. does not apply to goods traded in competitive markets
A utility-maximizing consumer is currently spending all of his/her income on two products, A and B. The MU of the last unit of A consumed is 50, the price of A is $25, and the price of B is $10 . The MU of the last unit of B consumed is
a. 50 b. 5 c. 2 d. 20 e. 100