When Argentina experiences a period of high inflation and Argentineans lose confidence in their peso as a store of value, which of the following would be least likely to occur?
A. Argentineans would use a different currency as a medium of exchange.
B. The buying power of the peso would decrease.
C. The demand for pesos would decrease.
D. The value of foreign currencies would depreciate relative to the peso.
Answer: D
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With the full implementation of the Single European Act, the EU became a
A) common market. B) free trade area. C) customs union. D) economic union. E) None of the above.
When transactions costs are low, private actions to correct externalities are usually feasible
a. True b. False
Denmark has a comparative advantage in cheese production, and Holland has a comparative advantage in beer production
The two countries initially trade cheese and beer based on their comparative advantages, but the government of Denmark later closes the border to trade with Holland. What is the likely impact of this trade restriction? A) Danish cheese consumers are worse off, and beer producers in Holland are better off. B) Cheese consumers in both countries are worse off. C) Beer consumers in Holland are worse off, and cheese producers in Denmark are better off. D) Beer consumers in Holland are better off, and cheese producers in Holland are better off.
A public good is
A. any good provided by government. B. a good that can be most cheaply provided by government, though it may in fact be provided by private enterprise. C. a good whose benefits cannot readily be restricted to a small group of people. D. a good whose benefits cannot be enjoyed by an individual alone.