Under a gold standard in which France defined one franc to be worth 1/50th of an ounce of gold and the U.S. defined one dollar to be worth 1/10th of an ounce of gold, then
A. one U.S. dollar would exchange for five French francs.
B. the French franc is worth only one-tenth as much as the dollar is worth.
C. the U.S. dollar is valued at one-fifth of the French franc.
D. on French franc would exchange for ten dollars.
A. one U.S. dollar would exchange for five French francs.
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Marginal utility theory predicts that a rise in the price of a banana results in
A) the demand curve for bananas shifting rightward. B) the demand curve for bananas shifting leftward. C) a movement upward along the demand curve for bananas. D) a movement downward along the demand curve for bananas.
Which of the following is least likely to be an example of peak/off-peak pricing?
a. breakfast cereals b. hotels c. wireless service d. electricity
If most people found the lifestyle of an assembly-line worker less desirable relative to that of persons in other professions, one would expect the return on the human capital investment of
a. assembly-line workers to be higher than that of persons in other professions. b. assembly-line workers to be lower than that of persons in other professions. c. assembly-line workers and that of persons in other professions to be nonetheless equal. d. both assembly-line workers and persons in other professions to be unaffected by the subjective preferences of investors.
Refer to the diagram. The vertical distance between ATC and AVC reflects:
A. the law of diminishing returns.
B. the average fixed cost at each level of output.
C. marginal cost at each level of output.
D. the presence of economies of scale.