In a Floating Exchange Rate system:
(a) The government intervenes to influence the exchange rate.
(b) The central bank intervenes to fix the exchange rate.
(c) The exchange rate adjusts to equate the supply and demand of the currency.
(d) None of the above
Answer: (b) The central bank intervenes to fix the exchange rate.
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If protective import-restricting quota are imposed by a country, all of the following groups benefit EXCEPT
A) domestic producers in the affected industry. B) domestic consumers in the affected industry. C) employees of domestic producers in the affected industry. D) importers that are able to obtain the rights to sell imported items in the affected industry.
Answer the next question on the basis of the following data faced by a perfectly competitive firm.OutputMarginal RevenueMarginal Cost0----1$16$102169316134161751621If the firm's minimum average variable cost is $10, the firm's profit-maximizing level of output would be
A. 2. B. 3. C. 4. D. 5.
Utilitarianism is the idea that only
A) competition brings efficiency. B) efficiency brings equality. C) income equality is fair. D) efficiency is fair.
Which of the following statements about the economically efficient level of air pollution is correct?
A) The economically efficient level of pollution occurs where the marginal cost of pollution reduction equals the marginal social benefit of reduction. B) The economically efficient level of pollution occurs where total benefits of pollution reduction are maximized. C) The economically efficient level of pollution is zero. D) The economically efficient level of pollution occurs where all social costs equal all social benefits.