The gold standard system was:
A) a floating exchange rate system.
B) a fixed exchange rate system, in which the country's currency was fixed relative to a pound of gold.
C) a fixed exchange rate system, in which the country's currency was fixed relative to an ounce of gold.
D) only used by the United States.
Answer: C) a fixed exchange rate system, in which the country's currency was fixed relative to an ounce of gold.
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a. there is a shortage b. there is a surplus c. the company cannot meet consumer demand d. equilibrium price has been reached
Which of the following statements is an example of normative economic analysis?
A) Pollution regulations have raised the cost of production for energy companies. B) As the wage rate increases, companies are hiring fewer workers. C) Improvements in technology have reduced the time needed to manufacture automobiles. D) Tablet computers should be manufactured in countries that do not restrict internet access to their citizens.