Describe how the euro was created. What are the benefits of the monetary union? What are the costs?
What will be an ideal response?
The European countries unified their currencies to reduce the costs of trading goods and assets. This is beneficial as it reduces transactions costs and because the European economy would rival that of the United States in scope and wealth. The potential costs are that there may be political conflict if countries disagree about monetary policy, or if inflation isn't as stable or low as some countries desire.
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"Assuming the long-run average cost curve is U-shaped, a firm will always seek to operate at the lowest point on the long-run average cost curve." True or false?
Indicate whether the statement is true or false
In response to the recession of 2008-2009, the United States
a. increased government spending as a share of the economy and enlarged the size of the budget deficit. b. reduced government spending as a share of the economy and shifted the budget toward a surplus. c. increased government spending as a share of the economy and shifted the budget toward a surplus. d. reduced government spending as a share of the economy and enlarged the size of the budget deficit.
which of the following would result in a high rating on the economic freedom of the world index?
What will be an ideal response?
The price at which a good or service is traded on international markets is called the ________ price.
A. international B. world C. market D. universal