The current international monetary system is best described as a a. fixed rate system. b. completely flexible rate system. c. gold standard. d. mercantilist system. e. managed floating rate system. ANSWER E
Date: September 10th, 2020
With regards to money in the colonies, (a) the colonies did not produce enough of their own precious metals to coin money. (b) the British did not allow the export of their own coins to the colonies but did not object to foreign coins flowing into the colonies. (c) the British did not allow paper […]
Date: September 10th, 2020
The emphasis upon export surpluses in mercantilist theory (a) is also called the “beggar-thy-neighbor policy” and a “favorable” balance of trade. (b) was thought to be a good thing by business people because it meant that more money was circulating and more money meant higher prices and brisk trade. (c) was thought to be a […]
Date: September 10th, 2020
In the debate between equity and efficiency, _____ tend to favor efficiency, while _____ tend to favor equity. a. Keynesians; classicals b. monetarists; supply-siders c. supply-siders; Keynesians d. classicals; supply-siders. ANSWER C
Date: September 10th, 2020
The perfectly discriminating monopolist will produce the (a) quantity at which average cost exceeds marginal revenue. (b) quantity at which marginal cost equals average cost. (c) quantity at which marginal revenue equals marginal cost. (d) quantity and price which is not necessarily profit-maximizing but in the best interest of society at large, even if it […]
Date: September 10th, 2020
Which event in business regulatory history permitted government intervention in industry affairs? (a) The case of Munn v Illinois (1877) (b) The Sherman Act of 1890 (c) The case of Nebbia v New York (1934) (d) The creation of the Interstate Commerce Commission via the Interstate Commerce Act of 1887 ANSWER (a)
Date: September 10th, 2020
According to the monetarist view, the a. IS schedule is quite flat; hence, reflecting a high interest elasticity of aggregate demand. b. IS schedule is quite steep; hence, reflecting a high interest elasticity of aggregate demand. c. LM schedule is quite flat; hence, reflecting a high interest elasticity of money demand. d. IS schedule is […]
Date: September 10th, 2020
Over the long-run, fluctuations in the growth rate in output are primarily driven by fluctuations in a. investment in capital. b. educational attainment. c. fluctuations in the labor force. d. fluctuations in labor productivity. ANSWER C
Date: September 10th, 2020
In a system of flexible exchange rates, lower inflation abroad would induce a. a rise in the U.S. exchange rate. b. a fall in the U.S. rate of exchange. c. a balance of payments deficit for the United States. d. no change in U.S. exchange rates. ANSWER B
Date: September 10th, 2020
Producers of goods and services suffered during the American War in which of the following sectors? (a) Fishing, whaling, and shipping (b) Exports and imports (c) Manufacturing and agriculture (d) All of the above ANSWER (d)
Date: September 10th, 2020
