Question

2 CIVICS QUESTIONS:

You are in charge of your country's currency, which is backed by a gold standard. Unfortunately, gold production is dropping sharply and is not expected to recover. What is your best option? (5 points)


A. Print more currency.

B. Borrow more gold.

C. Move to fiat currency.

D. Take no action.
16.
(03.04 MC)
A group of teens in your town meet and agree to charge a flat fee of five dollars per hour for babysitting. They charge the same rate no matter how many children there are, or when the service is needed. Then they divide areas of town on a map between them, agreeing to only serve customers within their respective areas. Within weeks they have gained most of the business in town, driving out other teens that cannot lower their rates. The babysitting market in your town has become (5 points)


A. purely competitive

B. a monopoly

C. monopolistically competitive

D. an oligopoly

Answer 1

oligopoly would be the correct answer (D.)

Answer 2

For the first question, I would choose C [a movement to flat currency]. When it comes to question number two, I'd say that D [oligopoly] is your best option.