Which of the following would likely cause the dollar to appreciate?
a) Rising interest rates in the United States.
b) An increase in United States citizens' preference for foreign goods.
c) Income growth of the United States exceeding that of other countries.
d) Rising inflation in the United States.
Ans: a) Rising interest rates in the United States.
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Of the three major economic questions, which of the following is the best example of a "How?" question?
A) Should we produce more heavy fleece coats? B) Should we spend more on health care? C) Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines? D) Should we eat more oatmeal? E) Should we build log homes or build factories from bricks?
Which of the following decreases the supply of popcorn?
A) a decrease in the price of popcorn B) an increase in the price of popcorn C) a technological advance in the production of popcorn D) a decrease in the number of popcorn producers
Shirking of one's duties is often encountered in team production settings because
a. few individuals are well-intentioned b. teamwork is recognized as less significant than individual performance c. teammates face a dilemma posed by a dominant strategy to shirk d. reputation effects dominate in long-term teams e. teamwork can be less than the sum of the individual parts
Beta in the CAPM is ____
a. one measure of the systematic risk of a stock b. estimated as the slope of a regression line between an individual security's returns and returns for the market index. c. useful in estimating the firm's cost of debt capital d. a and b only e. a, b, and c