The First Step in Making the Euro the Single Currency

question 31

Multiple Choice

The first step in making the euro the single currency of Europe was:

• A)taking steps to make all of the currencies in use in Europe have equal value.
• B)linking the value of all currencies in Europe to the USD.
• C)the institution of several policies including the freeing of capital flow among member states.
• D)obtaining the approval of the International Monetary Fund.

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Definitions:

Allocative Efficiency

Occurs when no resources are wasted; it is not possible to make any person better off without making someone else worse off.

Economic Problem

The challenge of limited resources to meet unlimited wants and needs of society.

Capital Goods

Long-lasting goods purchased or used by businesses to produce goods or services and not intended for final consumption.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.