Europe may not be an optimum currency area because
A. people speak different languages.
B. financial markets are weak.
C. workers are not very mobile.
D. the countries do not trade very much with each other.
Answer: C
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If one day the dollar is trading at 1.00 euro per dollar and the next day the exchange rate is 0.88 euros per dollar, one possible factor that might have led to this change is
A) an increase in the U.S. interest rate. B) a decrease in the European interest rate. C) the Fed buying dollars. D) the Fed selling dollars. E) an increase in the expected future exchange rate.
When a monopolistically competitive firm raises its price,
a. quantity demanded falls to zero. b. quantity demanded declines but not to zero. c. the market supply curve shifts outward. d. quantity demanded remains constant.
In 2009, the Nobel Prize in economics was awarded for work on the effectiveness of social norms in the management of commonly held property to:
A. Gary Becker. B. Arthur Pigou. C. Elinor Ostrom. D. Ronald Coase.
Refer to Exhibit 2-9. For Alex, the opportunity cost of producing one unit of good A is ____________ unit(s) of good B.
What will be an ideal response?