A. low inflation
B. low interest rates
C. stable nominal exchange rates
D. budget deficits and government debt under control
E. all of the above
Related Mcqs:
- In the EMU a country’s competitiveness can change because of ?
A. interest rate adjustment
B. central bank intervention in the Forex
C. domestic wage and price adjustment
D. devaluation - To try to overcome the free rider problem, the members of EMU signed ?
A. the stability and growth pack
B. the European solidarity packs
C. the exchange rate mechanism pact
D. the responsibility and growth pack - Which one of the following is not an argument in support of the UK joining the EMU ?
A. None of these arguments they are all arguments in support of the UK joining the UMU
B. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates
C. The UK risks exclusion from the Euroland capital market with damaging consequences with damaging
D. The UK needs to be a member of the EMU in order to continue to attract such large share of foreign direct investment in EU countries - If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?
A. The price of autos within the nation will rise by 10 percent
B. The price of autos within the nation will rise by less than 10 percent
C. The price of autos within the nation will rise by more than 10 percent
D. The price of autos will not rise because of internal competition - If a nation fitting the criteria for the large nation model imposes an import tariff ?
A. the domestic price of the product will increase by more than the tariff itself
B. The domestic price of the product will increase by the same amount as the tariff
C. The domestic price of the product will increase by less than the tariff
D. None of the above - Barriers to entry do not include ?
A. Patents
B. Internal economies of scale
C. Mobility of resources
D. High investment costs - Which of the following is not a barrier to entry in a monopolized market ?
A. A single firm is very large
B. The government gives a single firm the exclusive right to produce some good
C. The costs of production make a single producer more efficient than a large number of productions
D. A key resource is owned by a single firm - Barriers to entry ?
A. Do not exist in monopoly
B. Cannot exist in oligopoly
C. Do not exist in monopolistic competition
D. Do exist in perfect competition - Barriers to entry ?
A. Enable abnormal profits to be made in the long run
B. Enable losses to be made in the long run
C. Enable abnormal profits to be made in the short run only
D. Occur in perfect competition - When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?
A. behave like competitive firms
B. agree to act together
C. differentiate their products
D. practice price discrimination
