An Internet start-up company consists of three people with an idea that they wish to use in pursuing a patent for a product. What type of capital does this company have and what is its value?
What will be an ideal response?
The company's capital is mainly human capital. Unfortunately, this is very difficult to measure and therefore value.
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In general, a nation can enjoy a higher standard of living by ________ than by being self-sufficient.
A. specialization and trading B. taxing imported goods C. increasing its versatility D. avoiding trade with other nations
Refer to Figure 23-2. Suppose that the level of GDP associated with point N is potential GDP. If the U.S. economy is currently at point K,
A) firms are operating above capacity. B) the economy is in recession. C) the level of unemployment is equal to the natural rate. D) the economy is at full employment.
As a result of low interest rates on CDs and the perceived riskiness of alternative investments following the financial crisis of 2007-2009, the bond market was affected in all of the following ways EXCEPT:
A) higher demand for bonds B) higher real interest rates C) lower nominal interest rates D) higher price of bonds
William Safire argues that a unilateral free trade policy is a disaster if
a. the governments of the nations' trading partners practice "helpfulism." b. infant industries are allowed to expire. c. the national defense is endangered. d. it hurts the poor.