If the average productivity of Canadian firms is rising more quickly than the average productivity of Indian firms, which of the following would you expect to see?
A) an increase in the value of the rupee relative to the dollar
B) a decrease in the prices of Indian products
C) a decrease in the quantity demanded of Indian products relative to Canadian products
D) an increase in the quantity demanded of Indian products relative to Canadian products
Ans: C) a decrease in the quantity demanded of Indian products relative to Canadian products
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The "excess" growth rate of the money supply is the growth rate of money
A) plus the long-run growth rate of velocity. B) minus the long-run growth rate of velocity. C) plus the long-run growth rate of real GDP. D) minus the long-run growth rate of real GDP.
Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. The opportunity cost of one pair of gloves is:
A. 6 radishes for the United States and 2 radishes for Bangladesh. B. 60 radishes for the United States and 20 radishes for Bangladesh. C. 1/6 radishes for the United States and ½ radishes for Bangladesh. D. 6,000 radishes for the United States and 2,000 radishes for Bangladesh.
Mutual funds that are composed of corporate and government bonds are known as:
a. risk-adjusted funds. b. global funds. c. equity funds. d. fixed-income funds. e. money market funds.
A fundamental reason that governments provide public goods is that
A) those goods are subject to the free-rider problem. B) negative externalities are part of the production process of those goods. C) public goods are merit goods. D) those goods are perfectly divisible.