The following statements are true in the current exchange-rate system, except:
A. Major currencies like U.S. dollar, euro, pounds, and yen operate mostly in a flexible system responding to supply and demand forces
B. Some developing nations peg their currencies to the dollar and allow their currencies to fluctuate with it relative to other currencies
C. Each country uses its own unique currency; for example, only the U.S. uses the U.S. dollar as its currency
D. Some nations peg their currencies to a "basket" or group of other currencies, rather than to a single other currency
C. Each country uses its own unique currency; for example, only the U.S. uses the U.S. dollar as its currency
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In the figure above, when disposable income equals $10 trillion,
A) consumption expenditure is greater than disposable income but it is not possible to determine if consumers are saving or dissaving. B) consumption expenditure is less than disposable income, so consumers are dissaving. C) consumption expenditure is less than disposable income, so consumers are saving. D) consumption expenditure is greater than disposable income, so consumers are saving. E) consumption expenditure is greater than disposable income, so consumers are dissaving.
The table above shows the demand and total cost schedule for a monopolist hotel. What price should the monopolist charge if it is a single-price monopoly that maximizes its profit?
A) $171 B) $161 C) $151 D) $141
Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing movies in the United States is ________, and the opportunity cost of producing movies in Switzerland is ________
A) 2 movies; 2 cuckoo clocks B) 2.5 movies; 0.4 cuckoo clocks C) 0.4 cuckoo clocks; 0.5 cuckoo clocks D) 2.5 cuckoo clocks; 2 cuckoo clocks
A price floor set above the equilibrium price is binding
a. True b. False Indicate whether the statement is true or false