The act of taking a net asset position or a net liability position in some asset class is referred to as
A. buying.
B. hedging.
C. speculating.
D. investing.
Answer: C
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Which of the following would you expect to lead to improved environmental quality?
A. An export or production subsidy from the French government to French wheat producers B. An export subsidy for producers of clean technology for producing paper C. Freer trade that promotes production of manufactured goods in developing countries where environmental laws are lax D. A voluntary export restraint on the part of Japanese auto producers
When the size of a factory (and all its associated inputs) doubles and, as a result, output more than doubles,
A. Economies of scale must exist. B. The law of diminishing returns must not apply in the smaller factory. C. Marginal costs must be declining. D. The short-run ATC curve must be declining.
Which of the following will not cause the demand for milk (a normal good) to increase in the current time period?
A) a fall in the price of milk B) an increase in income C) an expected increase in milk prices D) a decrease in the price of cookies (a complement)
In Macroland, 500,000 of the 1 million people in the country are employed. Average labor productivity in Macroland is $20,000 per worker. Real GDP per person in Macroland totals:
A. $10,000. B. $1,000. C. $40,000. D. $15,000.