Commodity money is paper currency that may be redeemed for a specific commodity at a specified rate on the currency.
a. true
b. false
Ans: b. false
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Differentiate between a socially-optimal price and a fair-returns price
What will be an ideal response?
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Suppose Country A specializes in bananas, and Country B specializes in tomatoes. The limits to the terms of trade that Country A would find acceptable are Country A will give no:
A. more than 5 bananas for each tomato. B. less than 5 bananas for each tomato. C. more than 1 tomato for every 5 bananas. D. less than 1 tomato for every 5 bananas.
The rules of the WTO:
a. apply only to domestic trade within a nation. b. apply to both domestic trade within a nation and international trade with other nations. c. apply only to trade among nations. d. include a prohibition of tariffs. e. encourage high tariffs.
Recall the Application about the study done about the perceptions and behavior of the unemployed in Great Britain to answer the following question(s).According to this Application, if you are unemployed and if your peer group were also unemployed:
A. you have a better chance of finding employment. B. you may not be as aggressive in searching for work. C. you will want to find a job quickly to encourage your peer group about employment prospects. D. you have little chance of finding a job.