Total debt is more important in figuring out the ability of a country to service its debt than are debt to GDP and debt to export ratios
Indicate whether the statement is true or false
FALSE
You might also like to view...
Some studies find that trade in the Eurozone has risen substantially, but compared with the control group of nations that stayed out, Baldwin finds the effect is:
A) larger (25%) because prices have fallen and trade has increased by much more than the control group. B) just about the same because the control group is very similar to nations in the Eurozone. C) somewhat larger (9%) because there has been no measurable price decline within the union or evidence of trade diversion. D) much smaller (-2%) because trade within the union has been lackluster, whereas trade with the control group has increased dramatically.
Fuji and Kodak produce identical film. The market demand for film is given by P = 8 - Q, where P is the price (in dollars per roll of film) and Q is the quantity (in hundreds of rolls). Each firm has the option of producing 150, 200, or 300 rolls of film at a constant marginal cost of $2 per roll with no fixed costs. The firms' possible profits for various outcomes are summarized in the accompanying table.
(i) If the two firms behave competitively, what will be the outcome of this game? Is this outcome Pareto optimal for the firms?
(ii) If the two firms merge and form a monopoly, what will be the outcome of this game? Is this outcome Pareto optimal for the firms?
(iii) What is the Nash equilibrium for this game? Is it Pareto optimal for the firms? How does it compare with the competitive and monopoly outcomes?
(iv) Suppose this game is played sequentially, with Fuji as the first player. What will be the Stackelberg equilibrium? Is it Pareto optimal?
Although all points on the production possibilities frontier are efficient, that alone does not determine which point is “best” for the society.
Answer the following statement true (T) or false (F)
The burden of debt is borne by future generations.
A. True B. False C. Uncertain