Solved by verified expert :1)
Many economists argue that the gain to
European countries from all of them using the same currency
A)
would be very slight.
B)
would be significant.
C)
is impossible to measure.
D)
would depend upon whether the new currency
would be paper money or gold coins.
2)
The common currency in Europe
is called the
A)
euro.
B)
pound.
C)
sovereign.
D)
dollar.
3)
When was the common European currency
introduced?
A)
1914
B)
1945
C)
1970
D)
1999
4)
Movements in the money supply are
associated with
A)
changes in interest rates and inflation,
but not with changes in output.
B)
changes in inflation and output, but not
with changes in interest rates.
C)
changes in interest rates and output, but
not with changes in inflation.
D)
changes in interest rates, inflation, and
output.
5)
The most important reason why economies at
an early stage of development tend to operate inefficiently is that
A)
they tend to be dominated by the
agricultural sector, where productivity is usually low.
B)
they tend to have authoritarian
governments that stifle innovation.
C)
they tend to be plagued by superstitious
beliefs that stifle innovation.
D)
they tend not to have specialization of
labor.
6)
By “specialization” economists
mean a situation where
A)
individuals produce the goods or services
for which they have relatively the best ability.
B)
goods are traded directly for goods and
money is not used.
C)
individuals who produce goods do not also
produce services and individuals who produce services do not also produce
goods.
D)
individuals are assigned to occupations on
the basis of tests that gauge their relative abilities.
7)
The most important economic benefit from
specialization is that it
A)
makes it possible for an economy to begin
using money.
B)
leads to an increase in the standard of
living in an economy.
C)
makes barter possible.
D)
eliminates the need for financial markets.
8)
When an economy relies on specialization,
A)
the economy will generally produce only
one product.
B)
the economy will usually be heavily
agricultural.
C)
each individual in the economy produces
the goods or services for which he or she has relatively the best ability.
D)
each individual will be assigned by the
government to produce that good or service the government believes the economy
should specialize in.
