Which of the following cases is an OCA that is NOT preferred by a home country?

A) The home country faces symmetric shocks with the other country.
B) The labor market is well integrated, allowing for migration.
C) The home country faces asymmetric shocks with the other country.
D) The home economy is well integrated with the other country, carrying out vast amounts of trade.


Ans: C) The home country faces asymmetric shocks with the other country.

Economics

You might also like to view...

A country possesses a comparative advantage in the production of a good if

A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners. B) it possesses an absolute advantage in the production of this good. C) it is able to produce more of this good per hour than can any other country. D) all of the above.

Economics

In the United States, health care spending on people ________ is six times greater than on people ________

A) under age 3; over age 65 B) over age 65; aged 18 to 24 C) aged 18 to 24; 25 to 44 D) over age 65; aged 25 to 44

Economics

Government prohibition of advertising cigarettes on television would most likely result in

A) a rightward shift in the demand curve for cigarettes. B) a leftward shift in the demand curve for cigarettes. C) a rightward shift in the demand curve for television advertising time. D) no change in the market for either cigarette or television advertising.

Economics

A major distinction to be made is that deficits count government spending shortfalls ___________, and public debt counts _______________.

A. in a year; the total amount owed from all years B. from all years; the total from a single year C. in real terms; in nominal terms D. as a percentage of GDP; in nominal terms

Economics