APA format and references
Minimum of 75 words please answer each question asked.
McEachern, W. A. (2012). ECON Micro 3 (3rd ed.). Mason, OH: South-Western.
1. What factors determine the demand for British pounds in foreign exchange markets? How are exchange rates determined under a flexible exchange rate system?
2. How can two countries both be better off as a result of trade?
3. How did the Bretton Woods system operate? What caused its collapse? Some think the current system of managed but floating rates is too unstable. What would generate the instability?
4. What is foreign aid and what is the goal of foreign aid? Does foreign aid promote economic development? Explain briefly.
5. Why can't all the balance of payments accounts be in surplus?
1. What is the golden rule of profit maximization? Explain why the rule maximizes profits. Why are economic profits zero all along a long-run supply curve in perfect competition?
2. How is monopolistic competition like monopoly? How is it different?
3. Discuss the types of barriers to entry, and explain whether each type is likely to provide long-term monopoly power. What are the allocative and distributive differences between monopoly and perfect competition? What causes these differences?
4. Compare and contrast perfect competition and oligopoly.
5. Explain why product differentiation leads to differences between monopolistic competition and perfect competition.