One advantage of a managed float exchange rate system compared to a floating exchange rate system is
A) it allows the exchange rate to reflect demand and supply in the market.
B) there is no need for government intervention.
C) it allows greater exchange rate stability.
D) it eliminates the possibility of depreciation during a recession.
C
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Suppose the firm's marginal cost of producing a can increases by $1 per can. Then, based on the figure above, the firm would
A) produce zero cans. B) decrease the amount of cans it produces but not to zero cans. C) not change the amount of cans it produces. D) increase the amount of cans it produces. E) More information is needed to determine what action the firm will take.
Which of the following would not bar entry into a market?
a. control by a single firm of an essential resource b. the necessity of taking risks when starting a firm c. patents d. economies of scale e. government regulations limiting the number of firms in an industry
In the graph showing the data for the short-run and long-run Phillips curve from 1961–1973, we can see that, in the early 1970s, ______.
a. the inflation rate remained high, but the unemployment rate remained low
b. the unemployment rate remained high, but the inflation rate remained low
c. both the unemployment and inflation rates were relatively low
d. both the unemployment and inflation rates were relatively high
Slight discrepancies in the rates of appreciation versus depreciation of two currencies are related to:
a. a mathematical quirk that percentage increases are always larger than percentage decreases because, in the first case, the denominator is smaller. b. the imprecise nature of the calculations. c. the lack of reliable information. d. the volatile nature of exchange rates.