Which of the following is an item in the current account balance of the United States? The purchase of:
A. A U.S. company by a foreign company
B. Stock in a foreign corporation by a U.S. company
C. Insurance in the United States by a foreign company
D. A United States Treasury bond by a wealthy foreigner
C. Insurance in the United States by a foreign company
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A firm advertising using an expensive, famous spokesperson is often
A) aimed to raise rivals' costs. B) used to increase the total market demand. C) used to steal customers from rivals. D) used to focus on general problems the product addresses.
In the short run, perfectly competitive firms
a. always earn an economic profit b. never earn an economic profit c. always invest more in order to earn more d. never suffer an economic loss e. can earn an economic profit
Part of the good economic performance of the United States in the 1990s can be explained by a rightward-shifting aggregate supply curve
a. True b. False Indicate whether the statement is true or false
One piece of evidence in favor of the efficiency wage model is that some sectors of the economy pay relatively high wages, whereas other sectors pay lower wages. This supports the efficiency wage model as it seems to provide evidence of what?
A. High-wage firms take advantage of delayed-compensation contracts. B. Workers voluntarily provide bonds in case they are caught shirking. C. Unemployment is constant across sectors. D. Dual labor markets exist. E. There are compensating differentials being paid depending on the type of work being done.