Compared to a system of fixed exchange rates, currency unions are beneficial because they
A) allow exchange rates to float.
B) allow every country to have an independent monetary policy.
C) reduce the costs of trading goods and assets.
D) restrict what countries can do with fiscal policy.
C
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A black market is
a. a market that operates outside the legal system, either by selling illegal goods or by selling goods at illegal prices. b. a market where goods and services can be obtained at lower prices. c. a government-mandated market where controls are placed on prices. d. a market where exchanges are made using bartering.
How have the trade policies of developed countries discouraged new exports of less-skilled-labor-intensive manufactured goods by developing countries?
What will be an ideal response?
An inverse relationship will be graphed as
A. a U-shaped curve. B. a loop. C. a line that is upward sloping. D. a line that is downward sloping.
In order for large countries to successfully use tariffs to increase well-being,
A) they must have significant market power . B) the deadweight loss created by the tariff must be greater than the government revenue the tariff generates. C) domestic production must increase more significantly than for the small country case. D) domestic consumption and imports must decrease more significantly than in the small country case.