Which would be easier to reverse? For Denmark, which now pegs its national currency to the euro, to choose monetary autonomy and abandon its peg, or for Italy to switch back from the euro to the lira?
A) Italy, because all it has to do is cash euros for lire
B) Italy, because it can change over to an electronic payments system
C) Denmark, because it would only have to return all the euros in its treasury
D) Denmark, because it would not have to change its currency, accounting structure, nor reprint domestic currency
Ans: D) Denmark, because it would not have to change its currency, accounting structure, nor reprint domestic currency
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If Armenia can produce two rugs or 100 spy novels in an hour, and Turkey can produce one rug or 50 spy novels in an hour,
a. the terms of trade are 50 spy novels per rug, and Turkey should produce both rugs and spy novels b. the terms of trade are 50 spy novels per rug, and Turkey should produce only rugs c. the terms of trade are 50 spy novels per rug, and Armenia should produce only rugs d. there are no gains from trade e. the terms of trade are will exceed 50 spy novels per rug, and Armenia should produce both rugs and spy novels
In the arena of trade policy, the battle often seems to be between ________ laws that increase protectionism and ________ agreements that try to reduce protectionism.
a. national; national b. international; international c. national; international d. international; national
Which of these activities will most likely impose an external cost?
a. An athlete works out at a gym. b. A secretary smokes a cigarette in a crowded break room. c. A young mother pushes her baby in a stroller. d. A construction worker eats a hotdog during his lunch break.
If the price of oil is $60 per barrel, the quantity of oil supplied is 70 million barrels per day. If the price is $40 per barrel, the quantity of oil supplied is 69 million barrels per day. This implies that the
A) supply of oil is elastic. B) supply of oil is inelastic. C) demand for oil is inelastic. D) demand for oil is elastic.