Under a pure gold standard,
A) exchange rates float most of the time.
B) money is worth more than under other systems.
C) nations must buy and sell gold to settle international obligations.
D) there is no inflationary pressure.
C
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Which of the following would be most likely to increase the demand for money?
a. An increase in the price level b. A decrease in real income c. An increase in the interest rate d. A decrease in the cost of converting other assets into money e. A decrease in the price level
The intersection of the marginal prices or wage and marginal factor cost determines the wage in bilateral monopoly.
Answer the following statement true (T) or false (F)
Marta’s country has advanced technology and highly educated workers. In Jin’s country, workers are also highly educated and have access to the same advanced technology available in Marta’s country. However, the workers in Jin’s country produce more output. What is the most likely cause of this difference?
a. Jin’s country has a smaller population. b. Marta’s country has more people splitting the work. c. Jin’s country has more and better-quality tools, machinery, and factories. d. Marta’s country has better laws protecting property and investments.
According to the Mercantilists, governments should
A. not spend much on national defense. B. allow for free trade unencumbered by government regulations and restrictions. C. subsidize and encourage exports. D. subsidize and encourage imports.