The North American Free Trade Agreement (NAFTA) is an example of a(n)
A. customs union.
B. free-trade area.
C. common market.
D. economic union.
Answer: B
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In the interest-rate-based transmission mechanism, a decrease in the money supply will
A) reduce investment, shift the aggregate demand function inward, and lower real Gross Domestic Product (GDP). B) reduce the rate of interest and the level of investment. C) increase the price level. D) shift the aggregate supply function inward and increase real Gross Domestic Product (GDP).
Disparate treatment refers to:
a. the treatment of individuals on the basis of their race, sex, color, religion, or national origin. b. the treatment of individual workers on the basis of their opportunity costs. c. the treatment of individual workers on the basis of their marginal productivities. d. discriminatory treatment of the individuals due to lack of correct information. e. the discriminatory treatment of firms by the trade unions.
If a corporation cannot pay its debts, creditors cannot seek payment from shareholders' personal wealth
a. True b. False Indicate whether the statement is true or false
Regarding demand elasticity, which of the following statements is correct?
a. If demand for seller's product is elastic, a price increase will decrease total revenue. b. If demand for seller's product is elastic, a price increase will increase total revenue. c. If demand is exactly unit-elastic, an increase in price will raise total revenue. d. If demand is exactly unit-elastic, an increase in price will raise total revenue.