Financial institutions, acting as financial intermediaries, perform all of the following, except:
A. increase transactions costs.
B. pooling resources of small savers.
C. provide ways to diversify risk.
D. provide safekeeping and accounting services.
Answer: A
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China imports ___________ from the U.S. compared to how many goods the U.S. imports from China.
A. less B. more C. about the same D. practically nothing
The main process by which a recessionary gap is eliminated is a(n)
a. increase in wages that shifts the aggregate supply curve inward. b. drop in wages that shifts the aggregate demand curve inward. c. increase in wages that shifts the aggregate demand curve outward. d. drop in wages that shifts the aggregate supply curve outward.
A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. If Jane works for 6 hours she can rent out 9 apartments, and if she works for 7 hours she can rent out 12 apartments. The marginal benefit of Jane's 7th hour of work equals:
A. 9 apartments B. 3 apartments C. 1 apartment D. 12 apartments
Assuming the standard assumptions, in an infinitely long repeated-play ultimatum game, the second player's best strategy is most likely to:
A. will always accept only those offers over 50 percent of the total. B. reject offers that appear unfair. C. will always accept any offer. D. reject all offers.