Which of the following pairs of nations received the most remittances from their emigrants in 2011?
A. Mexico and Egypt.
B. China and India.
C. Pakistan and Iran.
D. Vietnam and Thailand.
Answer: B
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In many cases the Coase theorem does not work well because
a. there are too few parties at the negotiation table. b. the government does not know about the Coase theorem. c. transaction costs are too high. d. transaction costs are too low.
The United States is considered by the Institute for Management Development to be the most competitive economy because
A) U.S. residents are willing to work harder than anyone else is. B) of widespread entrepreneurship. C) of a high saving rate. D) of selected restrictions on imports from Japan and Europe.
An example of the moral hazard problem in international investment would be that
A. those seeking the funds are dishonest. B. those seeking funds for the riskiest projects are amongst those most actively seeking the funds. C. government officials may demand higher than the usual amount of bribes. D. the recipients of the funds may use the funds for riskier projects than the approved project.
When housing prices fall, as they did beginning in 2006 following the housing market bubble, consumption spending on furniture, appliances, and home improvements ________ as many households found it ________ to borrow against the value of their homes
A) declined; easier B) declined; harder C) increased; easier D) increased; harder