An investment is ________ if it is hedged against exchange-rate risk.
A. risk neutral
B. covered
C. speculative
D. uncovered
Answer: B
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Proprietorships generally have unlimited liability, whereas partnerships and corporations have limited liability
Indicate whether the statement is true or false
Suppose the United States experiences a long period of inflation relative to other countries. How will this affect U.S. net exports?
What will be an ideal response?
A temporary increase in government purchases in the classical model would
A) shift the production function to the right. B) shift the marginal product of labor curve to the left. C) shift the labor demand curve to the right. D) shift the labor supply curve to the right.
When calculating a firm's profit, an economist will subtract only
a. explicit costs from total revenue because these are the only costs that can be measured explicitly. b. implicit costs from total revenue because these include both the costs that can be directly measured as well as the costs that can be indirectly measured. c. the opportunity costs from total revenue because these include both the implicit and explicit costs of the firm. d. the marginal cost because the cost of the next unit is the only relevant cost.