Consider a country Atlantica, using dollars ($) as its currency. If this country sets a price for gold, and then issues currency such that the amount in circulation is equivalent to the value of gold held in reserve, it is said to be following:
a. a gold exchange standard.
b. a gold standard.
c. a reserve currency standard.
d. a crawling peg standard.
e. a currency board standard.
b
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If the consumption of a good by one person reduces the amount of it that can be consumed by others, the good is
A. excludable. B. nonexcludable. C. rivalrous in consumption. D. nonrivalrous in consumption.
In a bargaining solution, a player's net surplus is
A) the amount of total surplus minus any deadweight loss. B) the difference between what the player receives in the final bargain minus what she would have gotten from the disagreement point. C) the amount of consumer surplus she receives minus any deadweight loss. D) always maximized.
If the budget line rotates, then we know that
A. the consumer was not maximizing their utility. B. their has been a change in the consumer's tastes. C. income has changed. D. the price of one of the goods had changed.
Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max is currently at point d,
A) the absolute value of his MRS is larger than the trade-off offered by the market. B) he is willing to give up more chicken than he has to, given market prices. C) he is not maximizing his utility. D) All of the above.