Which of the following would result if Greece decided to order all Greek banks to convert euro-denominated accounts to drachma-denominated accounts?
A. A deflation would occur in the economy of Greece.
B. Domestic consumers in Greece would prefer imported goods.
C. The purchasing power of drachma would decline.
D. The value of euros would decline relative to the value of drachmas.
Answer: C
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If a firm in a monopolistically competitive market has a demand curve that is shifting to the right, it will only stop shifting when:
A. the firm's price is equal to its average total costs. B. the firm is earning zero economic profits. C. other firms have no incentive to leave the market. D. All of these statements are true.
Refer to Figure 2-2. If Vidalia chooses to produce 50 dozen roses, how many orchids can it produce to maximize production?
A) 20 dozen orchids B) 40 dozen orchids C) 60 dozen orchids D) 80 dozen orchids
Economists study how decisions are made.
Answer the following statement(s) true (T) or false (F)
Which type of business has the least government rules and regulations affecting it?
A) sole proprietorship B) partnership C) corporation D) They all have the same set of rules and regulations affecting them.