Flexible exchange rates are determined by
A. the government of the importing country.
B. the IMF.
C. the forces of supply and demand.
D. the government of the exporting country.
Answer: C
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Higher the economic freedom in a country, _____
a. lower is the standard of living of the people b. higher is the life expectancy of the people c. greater is the bureaucratic freedom and red-tapism d. lower is the level of access to education due to lack of government schools e. lower is the literacy rate
The costs of inflation are a. shoeleather costs and menu costs
b. arbitrary redistributions of wealth. c. increased variability of relative prices. d. All of the above.
According to supply-side theory, which of the following would shift the aggregate supply curve leftward?
A. Lower marginal tax rates. B. An increase in the money supply. C. Government deregulation. D. An increase in unemployment and welfare benefits.
A comparative advantage is the ability of one person or nation to produce a good at an opportunity cost that is lower than that of another person or nation.
Answer the following statement true (T) or false (F)