Which of the following would NOT be a reason why developed nations would try to coordinate their macroeconomic policies?
A) To achieve a desirable level of world economic growth
B) To avoid imposing a disproportionate burden on one major country in its attempt to help other world economies
C) To stimulate production in other countries using the higher incomes generated by policy coordination
D) To coordinate retaliatory policies on developing countries' trade barriers
D
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If the federal government has a budget deficit, then it is definitely the case that
A) the tax revenue exceed government outlays. B) the tax revenue and government outlays are equal. C) the tax revenue is falling and government outlays are rising. D) government outlays exceed tax revenue. E) the tax revenue is rising and government outlays are falling.
Underwriting involves
A) insuring the life or health of individuals. B) guaranteeing a price for new capital to the issuing firm. C) selling stock more cheaply than conventional stockbrokers. D) issuing stock and using the proceeds to buy bonds.
Answer the following statements true (T) or false (F)
1) The meaning of product quality is dependent on the type of product. 2) Product quality is likely to be the same for a frozen pizza firm and a paper towel firm. 3) In general, consumers' valuation of additional units of quality increases as more units of quality are included in a product. 4) In general, the product quality marginal revenue curve is downward sloping and the product quality marginal cost curve is upward sloping. 5) The quality profit-maximization rule states managers should produce the level of quality that sets the marginal revenue from an additional unit of quality equal to the marginal cost of producing the additional unit of quality.
Super Haulers is a hauling company and delivers large and heavy materials to construction job sites. Super Haulers is considering purchasing a new dump truck that costs $200,000 and the managers of Super Haulers have estimated that the new dump truck will generate $50,000 a year in future operating profit for the next four years. At the end of four years, Super Haulers can sell the dump truck at
a salvage price of $26,000. If the discount rate is 6 percent, what is the net present value of the dump truck? A) -$6,150 B) $3,583 C) $5,228 D) -$744