Under a gold standard, if the market price of gold is below the official price of gold (set by the monetary authority) members of the public would likely buy gold _______________ and sell it __________________, causing the market price of gold to ____________________
A) from the monetary authority; in the gold market; fall
B) from the monetary authority; in the gold market; rise
C) in the gold market; to the monetary authority; fall
D) in the gold market; to the monetary authority; rise
D
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If nominal GDP increases from one year to the next, then
A) production must have increased. B) production could have increased, decreased, or stayed the same. C) prices must have increased. D) prices and production must both have increased. E) prices and production must both have decreased.
Absolute advantage is
A) the ability to produce more output from given inputs than another producer can. B) the ability to produce a good at a lower opportunity cost than other producers. C) is always a relative concept. D) the ability to produce all goods at lower costs than anyone else can.
If the CPI is currently 202, what does this tell you about inflation between last year and this year?
A) There was deflation in the economy between this year and last year. B) Inflation in the economy between this year and last year was 2%. C) Inflation in the economy between this year and last year was 102%. D) The CPI measures only the level of prices in a given year, not the percentage change in prices from one year to the next.
Given the demand curve it faces, if an imperfectly competitive firm wants to sell another unit of output, it must:
A. increase its advertising. B. lower its quality. C. increase the value of its product. D. lower its price.