The net benefits of entering into an OCA are calculated by:
A) measuring the symmetry between the political structures of the nations.
B) measuring the variability of exchange rates between the nations.
C) comparing the efficiency benefits of market integration versus the costs of abandoning discretionary monetary policy.
D) comparing the trade balances between the nations with growth in GDP for each nation.
Ans: C) comparing the efficiency benefits of market integration versus the costs of abandoning discretionary monetary policy.
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Refer to Figure 4-3. If the market price is $2.50, what is the consumer surplus on the first ice cream cone?
A) $0.50 B) $1.00 C) $3.50 D) $9.00
Other factors held constant, if there are few close substitutes for a good, demand is more elastic for it
a. True b. False Indicate whether the statement is true or false