If you invest in a foreign company by buying 8 percent of its shares of stock, you have engaged in
A. adverse selection.
B. foreign direct investment.
C. moral hazard.
D. portfolio investment.
Answer: D
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The following diagram shows the rate of inflation each year during a five year span. Use this diagram to answer the next question.
In which year did prices go down?
A. Year 1 B. Year 2 C. Year 3 D. Year 4
What is the purpose of the following figure?
What will be an ideal response?
The statement “saccharine causes cancer” is not a theory; it is a hypothesis.
Answer the following statement true (T) or false (F)
Answer the following statement true (T) or false (F)
1) If an oligopolist's several rivals exactly match any price changes it initiates, the demand curve will be less elastic than if its price changes are ignored by its rivals. 2) If three or four homogeneous oligopolists collude, the resulting price and production outcomes will be similar to those of pure monopoly. 3) All other things equal, the larger the number of firms in an oligopolistic industry, the more difficult it is for those firms to collude. 4) Generally speaking, oligopolistic industries producing raw materials and semifinished goods usually offer differentiated products, while oligopolists producing consumer goods usually offer standardized products.