The United States, as a bilateral aid donor
a. ranks high in amount and high as a percentage of GDP
b. ranks low in amount and high as a percentage of GDP
c. ranks high in amount and low as a percentage of GDP
d. ranks low in amount and low as a percentage of GDP
e. is not ranked because all its aid is provided through the World Bank
C
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Political candidates often hold fundraisers by charging "per plate" for dinner. Wendy purchased four tickets to a $1,000 per plate dinner for a local city council candidate. Does this transaction benefit both parties?
A) Yes, but only if the dinners served actually cost $1,000 each. B) Yes, it was a voluntary exchange that benefited both parties. C) No, political candidates should never be allowed to overcharge for a fundraising dinner as that limits the number of people who can afford to attend. D) No, Wendy paid too much for four dinners.
A portfolio manager for a property and casualty insurance company who anticipates a recession is likely to shift the company's portfolio into
A) short-term securities. B) preferred stock. C) common stock. D) long-term corporate bonds.
Which of the following is not generally considered a failing of market economies?
a. Market economies can have severe swings from boom to bust. b. Market economies tend to underprovide public goods. c. Market economies tend to promote equity at the expense of efficiency. d. Market economies can misallocate resources when property rights are ill defined.
In a free market system, competition generates economic efficiency only when
A. firms are motivated by a sense of the greater good, not their desire for profit. B. economic decisions are taken out the hands of individuals and placed in the hands of government officials. C. consumers are motivated by a sense of the greater good, not their own self-interest. D. individuals take into account the full opportunity cost of their actions.