Author Question: Consider a country Atlantica, using dollars () as its currency. If this country sets a price for ... (Read 149 times)

bucstennis@aim.com · **on:** Jun 30, 2018

Consider a country Atlantica, using dollars () as its currency. If this country sets a price for gold, and then issues currency such that the amount in circulation is equivalent to the value of gold held in reserve, it is said to be following:
a. a gold exchange standard.
b. a gold standard.
c. a reserve currency standard.
d. a crawling peg standard.
e. a currency board standard.

Question 2

The net loss in welfare from a quota is proportionately larger than for a tariff because:
a. it does not result in government revenue.
b. the loss in consumer surplus is greater than the gain to producers and the government.
c. it prevents nations from fully realizing their competitive advantage.
d. it brings about higher prices and revenues to domestic producers.