The primary economic advantage of the European Union (EU) to its members is that:
A. the tax structures of each participating nation have been made nearly identical.
B. each nation is free to formulate its own antitrust and agricultural policies.
C. participating nations must all use a common currency.
D. the reduction of trade barriers permits producers to achieve mass-production economies.
D. the reduction of trade barriers permits producers to achieve mass-production economies.
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If C = $400, I = $100, G = $50, NX = $30, and NFP = $5, how much is GDP?
A) $580 B) $575 C) $585 D) $550
An important type of information asymmetry is:
A. information hazard. B. ethical constraint. C. adverse selection. D. advantage imbalance.
In international finance, hedging indicates:
a. not being able to make a commitment to buy or sell. b. delaying a purchase of foreign exchange, hoping the price will fall. c. simultaneously buying several currencies to ensure that at least one will rise in value. d. avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.
If a good has an elastic demand, then:
A. a small percentage change in price will cause virtually no change in quantity demanded. B. any percentage change in price will cause an almost immediate response in quantity demanded. C. a large percentage change in price will cause a smaller change in quantity demanded. D. a small percentage change in price will cause a larger percentage change in quantity demanded.