The optimal currency area involves a trade-off of reducing transaction costs but the inability to use changes in exchange rates to help ailing regions. If the US, Canada, and Mexico had one single currency (the Peso-Dollar) we would tend to see all of the following EXCEPT:
a. Even more intraregional trade of goods across the three countries.
b. Lower transaction costs of trading within North America.
c. A greater difficulty in helping Mexico as you can no longer deflate the Mexican peso.
d. Less migration of workers across the three countries.
e. An elimination of correlated macroeconomic shocks across the countries.
Question 2
Which of the following is TRUE about firms organized along functional lines?
a. Workers develop functional expertise
b. Workers can easily share information within their division
c. They foster the exploitation of economies of scale
d. All of the above
Lion at Melbourne Zoo enjoying an elevated grassy area with some tree shelter
Mirror Neurons in Broca’s Area
The Ventral Tegmental Area and the Nucleus Accumbens
Health Care Costs for the Elderly and Disabled
How to find the area of composite figures (Part 2)
The forces of diffusion and electrostatic pressure. (a) In diffusion, solutes move from an area of h