During the Financial Crisis of 2007-2008, investors demanded much higher risk premiums in their investments. This caused the SML to:
A. Shift up
B. Shift down
C. Become steeper
D. Become flatter
C. Become steeper
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If Bella's Pizza, a local pizzeria, purchases canned tomatoes from a grocery store to make their pizza sauce, this is an example of ________.
A) forward integration B) backward integration C) outsourcing D) using a spot market
Efficiency wage models imply that workers are more productive when they are paid a higher wage, as compared to when they are paid a lower wage
Indicate whether the statement is true or false
In the production function Real GDP = T (L, K), the T represents the tax coefficient
Indicate whether the statement is true or false
After accounting for differing _________ as well as _________, evidence for many countries is broadly consistent with the HeckscherOhlin model.
a. factor productivities; factor endowments b. preferences; factor productivities c. preferences; factor endowments d. factor endowments; generalities