Virtual currency unit 2 (VCU2) is different from VCU1 because:
a. VCU1 cannot be spent in the real world; VCUs can be spent in the real world.
b. In terms of convertibility, there is no difference; both VCU2 and VCU3 can be purchased with and sold for legal tender.
c. VCU2 can directly affect real world demand, whereas VCU1 cannot affect real-world demand.
d. In terms of their potential to change a nation's M2 money supply, there is no difference because neither VCU1 nor VCU2 affect M
.D
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Which of the following is TRUE?
A) Generally, the lower the country's average income, the less administrative, scientific, and technical capacity it has to design and enforce standards. B) National priorities do not change as income changes—countries of all income levels seem to share the same priorities and values. C) Differences in income are always an obstacle to the harmonization of standards. D) The adoption of a common set of rules usually narrows the market and raises prices.
One of the commonly used assumptions in deriving the Heckscher-Ohlin model is that tastes are homothetic, or that if the per capita incomes were the same in two countries, the proportions of their expenditures allocated to each product would be the
same as it is in the other country. Imagine that this assumption is false, and that in fact, the tastes in each country are strongly biased in favor of the product in which it has a comparative advantage. How would this affect the relationship between relative factor abundance between the two countries, and the nature (factor-intensity) of the product each exports? What if the taste bias favored the imported good?
In the United States, most income comes from
a. capital gains b. stocks and bonds c. providing labor resources d. illegal transactions e. government transfer payments
One difference between the assets included in M1 and those added to calculate M2 is that items in M1 are
a. better stores of value than those added to compute M2. b. more liquid than those added to compute M2. c. less liquid than those added to compute M2. d. larger than those added to compute M2.