If a foreign car manufacturer builds a plant in the United States, the new plant will
A. decrease U.S. GDP by the amount produced because of foreign ownership.
B. have no effect on U.S. GDP because it is a foreign company.
C. increase U.S. GDP by the amount produced.
D. increase U.S. GDP by the net exports of the company.
Answer: C
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Julia is a 28-year-old nonsmoking, non-drinking female of normal weight. Because of adverse selection in health insurance,
A) She will be charged less for her premiums than people who are higher risks. B) She is less likely to buy health insurance than the average person, because policy premiums are based on expected medical expenditures of people who are less healthy than she is. C) When she get health insurance, she will be less likely to take care of herself. D) She must get health insurance early in life, and is likely to lose health insurance if she smokes, drinks to excess, or gains weight. E) She is more likely than the average person to buy health insurance, because she is more likely to be offered it.
If an older worker earns less than a younger worker for the same job, we have proof of age discrimination
a. True b. False Indicate whether the statement is true or false
Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets and liabilities are each 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1 = $US1. Suppose that Argentina changes its exchange rate to P3 = $US1. Now what is the peso value of Argentina's total external wealth?
A) -270 billion pesos B) -150 billion pesos C) 0 D) -210 billion pesos
Refer to the information provided in Figure 9.3 below to answer the question(s) that follow. 
Figure 9.3Refer to Figure 9.3. This firm's ________ point corresponds to point B.
A. break even B. profit minimizing C. shutdown D. profit maximizing