Increases in the fraction of national debt held by foreigners _____ the burden of debt service on future generations _____
a. decrease; because it is easier for the borrowing nation to default on the debt
b. decrease; but may make the country more vulnerable to foreign intervention
c. decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically
d. increase; because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside
e. increase; because foreign bondholding pushes up interest rates at the date of issue, increasing crowding out
d
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Refer to the scenario above. What is the nominal GDP of the economy in 2012?
A) $47,000 B) $56,000 C) $55,000 D) $49,500
A pharmaceutical company faces a price regulation where it cannot charge any higher than $5,000 for a lifesaving drug. The company knows that the patients put a high value on this product and are willing to pay up to $10,000 for it. The company will likely
a. Not do anything-it is prohibited by law to increase its price b. Bundle the drug with periodic blood testing, selling the bundle for $10,000 c. Require that the patients have the drug administered by the company's medical staff, for an additional $5,000 d. Both B&C
Apple is an American company, but its iPhones are assembled in China. The sale of each iPhone then is counted in China’s GDP as:
A. consumption. B. investment. C. an import. D. an export.
The fundamental source of monopoly power is
a. many buyers and sellers. b. low fixed costs. c. rising average total costs. d. barriers to entry.