The financial crisis of 2007-2008 illustrated how important the integration of international financial markets could be in contributing to the spread of financial problems from one country to another. What solution is cited to curb the spread of financial problems from one country to another?
a. Better regulation of financial institutions to ensure prudent risk taking
b. Lowering the fiscal budget
c. Reducing international investment
d. Paying off debts from the Federal Reserve
e. Mitigating lack of government transparency
a
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Refer to Table 9-9
a. Which country has an absolute advantage in the production of both light bulbs and flash drives? b. Which country has a comparative advantage in the production of light bulbs? c. Which country has a comparative advantage in the production of flash drives? Table 9-10 Pens Pencils Tran 40 160 Farah 50 150 Table 9-10 shows the output per week for pens and pencils by Tran and Farah.
In the absence of discrimination, as human capital investments increase, wages will generally
A) decrease. B) increase. C) not change. D) increase or decrease.
Network affects can be present when the
A) internet was initially open to everyone. B) costs of production are low relative to the cost of distribution. C) cost of production are low relative to the costs of rent-seeking. D) costs of distribution are low relative to the costs of production.
A perfectly competitive firm, Paula's Pineapple Farm, is incurring a loss. In the short run it should continue to produce if ________, but in the long run, if there is no change in economic conditions, it should exit the industry.
A. price is equal to minimum ATC B. price is below minimum AVC C. price is above minimum ATC D. price is above minimum AVC