A fixed exchange rate system reduces the impact of
A) variations in the demand for real money balances on real incomes.
B) the volatility of aggregate expenditures on real incomes.
C) crowding out from fiscal expenditures.
D) the beggar-thy-neighbor effect.
A
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The problem with efficient component pricing is that it can invite entry that is inefficient
Indicate whether the statement is true or false
If Alicia limits the range of her productive activities rather than trying to be self-sufficient, she is engaging in
a. specialization b. exchange c. absolute advantage d. increasing opportunity costs e. reducing her standard of living
Economists who favor bigness in firms point to which of the following to support their argument?
a. economies of scale b. perfect competition c. need for antitrust d. advantages of marginal cost pricing e. constant returns to scale
Consider an unregulated monopoly in Figure 8.13. At the firm's profit-maximizing output level, its total revenue is:
A. $1,000,000. B. $200,000. C. $800,000. D. $600,000.