Explain why it may make sense for the United States, Japan, and Europe to allow their mutual exchange rate to float?
What will be an ideal response?
Even though these regions trade with each other, the extent of that trade is modest compared with regional GDPs and interregional labor mobility is low.
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Which of the following statements about perfect competition is true?
A. In the long run, the entry and exit of firms will generate normal profits for firms. B. In the short run, firms can only generate economic profits. C. In the long run, the entry and exit of firms will generate economic profits for firms. D. In the long run, the entry and exit of firms will generate losses for firms.
If we know that the demand curve for good x fails to reflect the total value to society of that good, then we know that
a. the market for good x is characterized by an externality, but we cannot determine whether the externality is positive or negative from this fact alone. b. the market for good x is characterized by a positive externality. c. the market for good x is characterized by a negative externality. d. the supply curve for good x fails to reflect the cost to society of producing that good.
The key difference(s) between monopoly and oligopoly is
A. there must be product differences in oligopoly. B. that there are two in oligopoly rather than one competitor in a monopoly. C. there are no differences between oligopoly and a monopoly. D. there are no barriers to entry with oligopoly.
Which of the following statements regarding the quality of managed care is accurate?
a. Managed care focuses on the ability to pay. b. Empirical evidence suggests that managed care fails to reduce health care spending. c. Empirical studies show little evidence that managed care quality was lower than that found in fee-for-service plans. d. Most of managed care's savings do not affect hospitalization.