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By Economics Mcqs No Comments

How does the eurozone compare with USA as a possible optimal currency area (OCA) ?

A. The eurozone has a higher degree of labour mobility than the USA and labour law is much less restrictive in the erozone than in the USA On these measures the eurozone is more likely to be an OCA than is the USA
B. The eurozone has a lower degree of labour mobility than the USA and labour law is much more restrictive in the erozone than in the USA On these measures the eurozone is less likely to be an OCA than is the USA
C. The eurozone has a higher degree of labour mobility than the USA but labour law is much more restrictive in the erozone than in the USA On these measures it is hard to judge whether the eurozone is more or less likely to be an OCA than is the USA
D. The eurozone has a lower degree of labour mobility than the USA and labour law is much less restrictive in the erozone than in the USA On these measures it is hard to judge whether the eurozone is more or less likely to be an OCA than is the USA

Related Mcqs:

  1. What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?

    A. Eurobank
    B. Foreign bank
    C. International Bank
    D. Multinational Bank

  2. If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?

    A. should increase the dollar value of exports
    B. should not have any effect on the dollar value of U.S imports
    C. must increase the balance of trade
    D. All of the above

  3. For the Eurozone countries, the most important source of the downward slope of the aggregate demand curve is probably ?

    A. The wealth effect
    B. None of these answers
    C. The exchange-rate effect
    D. The fiscal effect
    E. The interest-rate effect

  4. An optimal tariff is one which reduces imports to the level at which ____ equals ____?

    A. imports, exports
    B. the balance of trade, zero
    C. The demand for currency the supply of currency
    D. social marginal cost, social marginal benefit

  5. The socially optimal rate of growth is ?

    A. Zero
    B. Negative
    C. Where the marginal social benefit = the marginal social cost
    D. Total social costs are minimised

  6. The optimal level of provision of public goods is where society total willingness to pay per unit is equal to the ?

    A. variable cost of producing the good
    B. average cost of producing the good
    C. marginal cost of producing the good
    D. total cost of producing the good

  7. The consumer’s optimal purchase of any two goods is the point where ?

    A. the budget constraint crosses the indifference curve
    B. the two highest indifference curves cross
    C. the consumer reaches the highest indifference curve subject to remaining on the budget constraint
    D. the consumer has reached the highest indifference curve

  8. The price of one country’s currency in terms of another country’s currency is the ?

    A. exchange rate
    B. balance of trade
    C. terms of trade
    D. currency validation

  9. With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

    A. increased
    B. unaffected
    C. reduced
    D. None of these

  10. Because of the J curve effect and partial currency pass through, a depreciation of the domestic currency tends to increase the size of a ?

    A. trade surplus in the short run
    B. trade surplus in the long run
    C. trade deficit in the short run
    D. trade deficit in the long run

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