An Important Problem with the Gold Standard Was That

question 90

Multiple Choice

An important problem with the gold standard was that

• A) it was too complicated and restricted business activity.
• B) a country did not have control of its domestic monetary policy.
• C) exchange rates tended to fluctuate a great deal, making it difficult for businesses to make long-run plans.
• D) one country could easily manipulate the system to its advantage and the disadvantage of other countries.

Understand the profit maximization rule (MR=MC) and its application to monopolists and competitive firms.

Analyze the relationship between demand, marginal revenue, and price elasticity in a monopolistic market.

Understand the concepts of economic profit, loss, and break-even points for monopolists.

Interpret graphical representations of demand, total revenue, and marginal revenue curves for a monopolist.