According to the law of one price
A) a company can only charge one price for a product, no matter which nation the product is sold in.
B) interest rates across nations should be the same when adjusted for exchange rates.
C) goods that are easily tradable across nations should sell for the same price expressed in a common currency.
D) the price of gold should differ between nations.
C
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In recent years, almost ________ percent of managers convicted of violating the Sherman Act have gone to prison.
A) 50 B) 100 C) 90 D) 75
Knowing that most people do not care to be outliers, one way to get people to behave a certain way is to:
A. tell them everyone else does it. B. let them know it is a social norm to behave that way. C. encourage the behavior of the majority. D. All of these statements are true.
If on a given product indifference curve a firm is using an insufficient (nonoptimal) amount of one of its inputs
a. output will be below optimal. b. the MRP of the input will be below its price. c. costs will not be minimal. d. relative input prices need to change.
Refer to the accompanying figure.
Based on the figure, if the economy is in short-run equilibrium with output equal to 24,000, then there is ________, and ________ could return the economy to potential output (Y*).
A. an expansionary gap; a decrease in autonomous expenditures of 4,000 B. a recessionary gap; an increase in autonomous expenditures of 1,000 C. a recessionary gap; an increase in autonomous expenditures of 4,000 D. an expansionary gap; a decrease in autonomous expenditures of 1,000