**Homework (Ch 08)****7. Economic Costs and Benefits of a Common Currency***Identify whether each attribute in the following table is an advantage or disadvantage of sharing a currency across country boundaries.*| Attribute | Advantage | Disadvantage ||------------------------------------------------|-----------|--------------|| Greater certainty for investors | | || Lower protectionism | | || Elimination of exchange fluctuations | | || Dependent monetary policy | | || Greater risk of macroeconomic shocks | | |*Which of the following are reasons NAFTA is considered __________ currency area? Check all that apply.*- [ ] Similar economic structures- [ ] Low efficiency gains- [ ] Labor immobility- [ ] A single monetary policy that is equally effective across bordersOptions for the fill-in-the-blank: "a suboptimal" or "an optimal".

Answered: dentify whether each attribute in the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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**Homework (Ch 08)**

**7. Economic Costs and Benefits of a Common Currency**

*Identify whether each attribute in the following table is an advantage or disadvantage of sharing a currency across country boundaries.*

| Attribute | Advantage | Disadvantage |
|------------------------------------------------|-----------|--------------|
| Greater certainty for investors | | |
| Lower protectionism | | |
| Elimination of exchange fluctuations | | |
| Dependent monetary policy | | |
| Greater risk of macroeconomic shocks | | |

*Which of the following are reasons NAFTA is considered __________ currency area? Check all that apply.*

- [ ] Similar economic structures
- [ ] Low efficiency gains
- [ ] Labor immobility
- [ ] A single monetary policy that is equally effective across borders

Options for the fill-in-the-blank: "a suboptimal" or "an optimal".

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Economic cost

The overall sum of all losses of products with importance attributed to them from almost any person seems to be the economic cost. This same economic cost is primarily used mostly by economists as a tool to assess the prudential of various courses of action. Income, time, and certain other resources all have to be factored into the equation. Pricing is the total of all stated costs.

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