If two risky assets, A and B, have negative correlation, then when A's yield increases
A) B's yield increases.
B) B's yield decreases.
C) B's yield can increase or decrease.
D) There is not enough information to determine what B's yield will do.
B
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A U.S. automobile dealer has ordered a fleet of Japanese cars worth 10 million yen. The terms of payment is C.O.D. (cash on delivery). At the time the order was placed, the exchange rate was 100 yen per U.S. dollar
When the fleet arrived the exchange rate had become 200 yen per U.S. dollar. A) This change in the foreign exchange rate will hurt the U.S. importer. B) This change in the foreign exchange rate will hurt the Japanese exporter. C) This change in the foreign exchange rate will benefit the U.S. importer. D) This change in the foreign exchange rate will benefit the Japanese exporter.
An upward-sloping labor-supply curve implies that an increase in the wage induces
a. firms to decrease the quantity of labor they hire. b. firms to increase the quantity of labor they hire. c. workers to increase the quantity of labor they supply. d. workers to increase the quantity of leisure they enjoy.
Recall the Application about the incentives to install rooftop solar panels to answer the following question(s).According to the Application, a 10 percent increase in the tax credits for solar panels results in an increase in the number of households that install solar panels by 7.6 percent. The increase in sales due to this subsidy is an example of which element of the economic way of thinking?
A. responding to incentives B. isolating variables C. thinking at the margin D. using assumptions to simplify
The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a dozen eggs?
A) 1 2/3 gallons of milk B) 3/5 of a gallon of milk C) $2.50 D) $1.50