The present value of $100 to be received one year from now
A) is $100.
B) is $110.
C) is $90.
D) cannot be determined without knowing the interest rate.
Answer: D
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What is the biggest problem of using government actions such as taxes and pollution charges to control external costs?
A) insufficient legal power to enforce the controls B) obtaining enough data to determine how much the tax or pollution charge will be C) In some situations, there is no known way to control the external costs. D) political lobbying and voter disagreement E) The Coase theorem points out that taxes and pollution charges work only in the short run and not in the long run.
A case study of Japanese auto imports during the 1980s focuses on an agreement between Japan and the United States to undertake:
a. a coordinated effort to improve gas mileage. b. a study of wage concessions by Japanese carmakers in the United States. c. a review of unionization and employee benefits in both nations. d. a voluntary export restraint.
Bureaucratic control emphasizes which organizational element?
a. hierarchy and authority b. budget and market influences c. benchmarking statistics d. product quality assurance
The presidents of each of the district Federal Reserve banks (including the New York Federal Reserve bank) are currently not required to undergo a formal political appointment and approval process. Do you think this is appropriate?
What will be an ideal response?