Refer to the diagram pertaining to two nations and a specific product. The equilibrium level of exports and imports occurs at:
A. H, where GB and FC intersect.
B. J, where the vertical distance between A and B equals the vertical distance between C and
D.
C. world price level F.
D. world price level G.
A. H, where GB and FC intersect.
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The social rate of discount is best approximated by:
a. the cost of government borrowing b. the opportunity cost of resources taken from the private sector c. 3 percent d. 30 percent e. none of the above
If a firm refuses to hire any minorities due to a personal prejudice, its profits
a. will increase markedly. b. will not be affected. c. will increase slightly. d. will decrease.
If substantial internal scale economies exist, production of a commodity tends to be concentrated in a few large facilities in a few countries.
Answer the following statement true (T) or false (F)
If the expected inflation rate is negative, the expected real interest rate must be
A) negative. B) less than the nominal interest rate. C) equal to the nominal interest rate. D) greater than the nominal interest rate. E) none of the above