If the exchange rate changes from 1.5 euros per dollar to 1.0 euro per dollar, the euro has
A) depreciated against the dollar.
B) appreciated against the dollar.
C) fallen inversely in value.
D) depreciated against the euro.
E) appreciated against the euro.
B
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A successful market economy requires well defined property rights and
A) a safety net to ensure that those who cannot participate in the market economy can earn an income. B) detailed government regulations. C) balanced supplies of all factors of production. D) an independent court system to adjudicate disputes based on the law.
During the most recent recession, many people temporarily lost substantial value in their retirement investment portfolios because most of the assets (including stocks, bonds, and real estate) all declined in value at the same time
In hindsight, what was the problem with these portfolios? A) The portfolios were not adequately diversified because the assets were negatively correlated, so all of the assets had negative returns at the same time. B) The portfolios were not adequately diversified because the assets were more positively correlated than expected, so all of the assets had negative returns at the same time. C) The portfolios were adequately diversified, but the assets should have been more positively correlated to protect against recession risk. D) The investors should not have diversified their investments to protect against recession risk.
According to the figure, The Rock Shop:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. should enter the market, regardless of what MiiTunes chooses to do.
B. should not enter the market, regardless of what MiiTunes chooses to do.
C. does not have a dominant strategy.
D. has more than one dominant strategy.
Which of the following is an example of capital?
a. Education b. Natural resources c. Machinery d. Training e. Money