An important problem with the gold standard was that
A) it was too complicated and restricted business activity.
B) a country did not have control of its domestic monetary policy.
C) exchange rates tended to fluctuate a great deal, making it difficult for businesses to make long-run plans.
D) one country could easily manipulate the system to its advantage and the disadvantage of other countries.
B
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Assume that Oscar is maximizing his total utility and that the equal marginal principle holds by the time he is done allocating his budget.If MUa/Pa = 100/$35, MUb/Pb = 300/?, and MUc/Pc = 400/?, the prices of products B and C
A. cannot be determined from the information given. B. must be $105 and $175, respectively. C. must be $100 and $200, respectively. D. must be $105 and $140, respectively.
Which of the following thoughts do the Keynesian and the new Keynesian economists share?
a. The belief that wages and prices are not flexible in the short run b. The belief that the aggregate supply curve is always a horizontal line c. The belief that the government's role in the economy should be minimized d. The belief that the natural rate of unemployment in an economy is always zero e. The belief that prices are constant and that changes in aggregate expenditures determine equilibrium real GDP
Positive externalities exist any time the social costs of producing a good or service exceed the private costs
a. True b. False Indicate whether the statement is true or false
Both the unionization and concentration rates are measures of market power.
Answer the following statement true (T) or false (F)