When a fixed exchange rate system is adopted, it results in all of the following except:
A) reduced uncertainty about exchange rate.
B) decreased volatility in prices.
C) increased volume of trade.
D) decreased volume of trade.
Ans: D) decreased volume of trade.
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Which of the following has contributed to decreased concentration in U.S. industry since the 1970s?
a. rising interest rates and disinflation b. segmentation and economies of scale c. devaluation and economies of scale d. technological change and market globalization e. marginal cost pricing and product differentiation
Since the income elasticity for food is estimated to be 0.51, it appears that the proportion of income spent by poor people on food is ____ the proportion spent by those with higher incomes
a. greater than b. less than c. about the same as d. about half as great as