Which of the following would contribute to a U.S. balance of payments surplus?
A. The United States makes a unilateral tariff reduction on imported goods.
B. General Motors pays a dividend to a Swiss stockholder.
C. The United States cuts back on U.S. military personnel stationed in Germany.
D. Russian vodka becomes increasingly popular in the United States.
C. The United States cuts back on U.S. military personnel stationed in Germany.
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In an article, "Preparing for the Next Black Swan" (Wall Street Journal, Aug 21, 2010), the point is made that diversification may be insufficient in protecting one's portfolio during a "Black Swan" event. Why may this be true?
A) virtually all asset classes may decline at the same time B) investors may be unable to buy different assets during a "Black Swan" event C) some assets may rise while others decline during a "Black Swan" event D) Black Swan events are surprises and thus one cannot prepare for such an event.
When choosing the right amount of a public good to supply, the government often:
A. guesses, because people have an incentive to overstate a good's value. B. provides too much, because people have an incentive to understate a good's value. C. provides too little, because people have an incentive to overstate a good's value. D. fails to provide it, because people have an incentive to understate a good's value.
Brandon, Haley, Melissa, and Jeffrey each won $1,000 in their office football pool. According to Keynes's absolute income hypothesis, which of them would be most likely to spend the most out of their winnings?
a. Brandon, Haley, Melissa, and Jeffrey will spend the same out of their winnings b. Brandon, who earns $10,000 as a mail clerk c. Haley, who earns $25,000 as an account representative d. Melissa, who earns $50,000 as a software programmer e. Jeffrey, who earns $2 million as the CEO
Economic profit affects:
A. the allocation of resources but not the level of resource use. B. the level of resource use but not the allocation of resources. C. the allocation of resources and the level of resource use. D. neither the allocation of resources nor the level of resource use.