If the wages and productivity of U.S. workers are higher than those of Mexican workers, a Japanese company would:
A. build a plant in Mexico.
B. be indifferent about where the plant is built.
C. build a plant in the United States.
D. require more information before deciding where the plant is built.
Answer: D
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An increase in input costs in the production of electric automobiles caused the price of electric automobiles to rise
Holding everything else constant, how would this affect the market for gasoline-powered automobiles (a substitute for electric automobiles)? A) The supply of gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would decrease. B) The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase. C) The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would decrease. D) The demand for gasoline-powered automobiles would decrease because consumers could afford to buy fewer gasoline-powered automobiles.
The IMF, because it can force nations to take loans and bail out packages, has more power than other international governmental organizations dealing with the global economy
Indicate whether the statement is true or false
If a chemical factory causes noxious fumes to be emitted in the neighborhood, a likely third party would be
a. workers at the factory b. factory managers c. chemical customers d. neighborhood homeowners and their families e. owners of the factory
A situation in which both players can adopt moves such that each player's move is its most profitable response to the move of the other is the
a. prisoner's dilemma. b. Nash equilibrium. c. maximin criterion. d. tacit collusion.