A problem with the operation of the gold standard in the world economy was that
A) it involved too much government intervention in the economy.
B) the world economy was subject to too much inflation.
C) a country did not have control of its domestic monetary policy.
D) it caused the Great Depression.
Answer: C
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What can be expected to happen in a country that enacts trade barriers?
A) The rate of population growth will decrease. B) The rate of economic growth will decrease. C) The rate of immigration will increase. D) The rate of technological innovation will increase.
Scarcity is a situation in which
A) people cannot satisfy all their wants. B) most people can get only bare necessities. C) people can satisfy all their wants. D) some people can get all they want and some cannot.
Refer to Figure 7-3. If there was no quota, how many pounds of peanuts would domestic producers supply?
A) 10 million B) 28 million C) 30 million D) 40 million
A price floor is a reasonable price control mechanism to impose in cases where the government believes the market's equilibrium price
a. creates an excess supply that will force price downward b. is too high c. creates an excess demand that will force price upward d. is too low e. is higher than the market price