The value of a nation's currency is a good reflection of:
a. The nation's wealth.
b. The nation's international competitiveness.
c. The nation's income.
d. None of the above.
.D
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Which of the following functions of money would prove rather useless if inflation were extremely high?
A) medium of exchange B) store of value C) standard of value D) all of the above
The benefits from international trade include
A. A rightward shift of the production possibilities curve. B. A higher standard of living for every person. C. A higher rate of population growth. D. Greater efficiency in the use of the world's limited resources.
Assume the price of good X increases. As a result, your real income decreases and you decrease the quantity of good X purchased each month. This is an example of the:
A. income effect. B. consumer price effect. C. revenue effect. D. substitution effect.
The figure above shows the market for the chemical hydrogen sulfide, the production of which creates an external cost. The government imposes the pollution tax shown in the figure. How much tax revenue does the government collect?
A) $640 million B) $320 million C) $240 million D) more than $640 million E) zero, because the government has taxed the firms out of business.