Economics MCQs

A. Very high rates of inflation occur domestically
B. Foreigners discriminate against domestic products
C. Technological advance is superior abroad
D. The domestic currency is undervalued relative to other currencies

A. Pegged exchange rates
B. Freely floating exchange rates
C. Managed floating exchange rates
D. Crawling exchange rates

A. Purchasing power parity theory
B. Asset markets theory
C. Monetary theory
D. Balance of payments theory

A. Appreciates against foreign currencies
B. Depreciates against foreign currencies
C. Be officially revalued by the government
D. Be officially devalued by the government

A. Floating exchange rates
B. Pegged exchanged rates
C. Managed floating exchange rates
D. Dual exchange rates

A. Gold
B. Silver
C. A single currency
D. A basket of currencies

A. Pegged of fixed exchange rates
B. Adjustable pegged exchange rates
C. Managed floating exchange rates
D. Free floating exchange rates

A. Dual exchange rates
B. Managed floating exchange rates
C. Adjustable pegged exchange rates
D. Crawling pegged exchange rates

A. A tradeable pollution permits.
B. An attempt to internalize a positive externality
C. An application of the coase theorem
D. An attempt to internalize a negative externality.

A. Reduce the incentive for technological innovations to further reduce pollution.
B. Set the price of pollution.
C. Determine the demand for pollution rights.
D. Set the quantity of pollution