Which of the Following Is NOT a Required Convergence Criteria

question 13

Multiple Choice

Which of the following is NOT a required convergence criteria to become a full member of the European Economic and Monetary Union (EMU) ?

• A) National birthrates must be at 2.0 or lower per person.
• B) The fiscal deficit should be no more than 3% of GDP.
• C) Nominal inflation should be no more than 1.5% above the average inflation rate for the three members with the lowest inflation rates in the previous year.
• D) Government debt should be no more than 60% of GDP.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced.

Implicit Costs

The opportunity costs of using resources owned by the firm for its project instead of selling or renting them to others.

Fixed Costs

Costs that do not vary with the level of production or output, such as rent, salaries, and insurance.

Variable Costs

Variable costs are expenses that change in proportion to the level of production or business activity.