One major advantage to a fixed exchange rate system is
A) that exchange rate volatility is eliminated.
B) that hedging strategies can be implemented.
C) that fixed exchange rate nations seldom have credit risk problems.
D) that systemic risk is eliminated.
A
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A good example of central planning at work in the U.S. is:
A. McDonald's fries being the same everywhere. B. New York City's rent control program. C. car manufacturers establishing suggested retail prices. D. unions working with businesses to establish wages.
The United States produces ____ of what it consumes, and consumes ____ of what it produces.
A. little; little B. little; most C. most; little D. most; most
Other things equal, if Mexico devotes more resources to train its population than Spain,
A) Mexico will be able to eliminate scarcity faster than Spain. B) Mexico will grow faster than Spain. C) Mexico will be able to eliminate opportunity cost faster than Spain. D) Mexico will have more current consumption than Spain. E) Spain will grow faster than Mexico.
In the circular flow model, which of the following is on the selling side in the goods market?
A) federal, state, and local governments B) only households C) exporters D) only firms E) both firms and households