Industrial countries are not usually involved in currency bailouts since they are not likely to be affected by the devaluation of another country's currency.
Answer the following statement true (T) or false (F)
False
An industrial country is likely to be affected by the devaluation of another country's currency through trade; a country that is bailed out may avoid disastrous disruptions to trade, thereby helping the industrial country.
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Refer to Figure 18.3. The opportunity cost of producing scooters in Livonia is
A) 2/3 of a pogo stick. B) 6/5 of a pogo stick. C) 1.5 pogo sticks. D) 1.25 pogo sticks.
In order to earn an economic profit, a firm needs to charge a price in excess of
A) accounting average cost. B) normal average costs. C) economic average cost. D) long-run fixed costs.
Refer to the following table:
The optimal level of activity is:
A. 2 B. 3 C. 4 D. 5 E. There is no optimal level in this case because marginal benefit does not equal marginal cost at any of the activity levels.
The World Bank specializes in making loans to
A. industrialized nations. B. communist nations. C. African nations. D. developing nations.