The virtual currency battle between Facebook and Zynga reminds us that:
a. Once a company starts a virtual currency, it is difficult and costly to abolish the currency. For nations, the same is true. Countries, like Greece, that entered the European Monetary Union now find it very difficult and costly to abandon the euro.
b. Companies that start virtual currencies can abolish them rather quickly, which stands in stark contrast to countries, like Greece, that entered the European Monetary Union but now find it difficult and costly to abandon the euro.
c. Companies that start virtual currencies are like countries, such as Greece, that entered the European Monetary Union. In both cases, it appears relatively easy to abandon the virtual currency and currency area.
d. Countries, like Greece, that entered the European Monetary Union now find it relatively easy and inexpensive to abandon the euro. This stands in stark contrast to companies that start virtual currencies and wish to abolish them.
.B
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In an expansion, federal tax receipts increase proportionally more than real GDP without the need for any government policy. This increase is an example of
A) discretionary monetary policy. B) automatic monetary policy. C) automatic fiscal policy. D) discretionary fiscal policy. E) the effect of deficit spending.
Refer to the above table. Suppose the price of X increases from $10 to $12. What is the cross price elasticity of demand between X and Z?
A) +0.292 B) +7.06 C) -7.06 D) -0.292
When an individual firm in a competitive market decreases its production, it is likely that the market price will rise
a. True b. False Indicate whether the statement is true or false
Which of the following represent problems encountered by the Organization for Petroleum Exporting Countries (OPEC) oil cartel?
a. There has been considerable cheating by OPEC members on their quantity allocations. b. The United States has accused the OPEC for price fixing and has partially banned oil cartels. c. World demand for oil has declined by approximately 1/3 since the mid-1970's, making it extremely difficult for OPEC to maintain satisfactory prices and revenues for its members. d. The high production costs incurred by all the OPEC members prompts them to break the cartel and charge a high price in the international market.