Under a pure gold standard
A) the dollar is tied to gold and all other currencies are fixed relative to the dollar.
B) all foreign exchanges involve gold for goods and services.
C) all currencies are defined in terms of gold and these rates are fixed.
D) all trade involves government agencies.
C
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Loss aversion refers to the idea that:
A) people generally tend to avoid risky activities. B) people are more prone to making losses than gains in day-to-day transactions. C) people psychologically weight a loss more heavily than they psychologically weight a gain. D) people are unwilling to undertake expenditures that reduce the probability of future losses.
Refer to the diagram in which S is the before-tax supply curve and S t is the supply curve after an excise tax is imposed. The total amount of the tax paid by consumers is shown by areas:
A. A + B + F.
B. A + B.
C. A + B + C.
D. E + F.