The argument that government action is justified based on the fact that people would agree to be coerced to do the action if everyone else is forced to do the action is essentially an argument based _____
a. upon the transitional gains trap
b. on the free rider problem
c. on the ideal of the public interest
d. prisoners dilemma
b
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Suppose someone offered to give you $1,000,000 five years in the future and the anticipated interest rate is 5 percent. The present value of this offer would be worth approximately
A) $784,000. B) $500,000. C) $1,050,000. D) $286,000.
The name of the rate that equalizes the prices of internationally traded goods between countries is called the
a. international interest rate. b. arbitrage rate. c. purchasing power parity rate. d. foreign exchange rate.
If the equilibrium exchange rate between U.S. dollars and Japanese yen is $0.01 = 1 yen but currently the exchange rate is $0.0089 = 1 yen, then a __________ exists
A) shortage of dollars B) surplus of dollars C) surplus of yen D) shortage of yen E) b and d
In determining the beginning of recessions, the NBER Business Cycle Dating Committee looks for evidence of decline in:
A. the entire economy. B. the rate of inflation. C. specific sectors of the economy. D. the stock market.