If a Japanese company sells 200 VCRs to a French company and uses the money to buy U.S. government bonds, the Japanese trade balance ________, and the Japanese financial account balance ________.
A. rises; rises
B. falls; falls
C. falls; rises
D. rises; falls
Answer: D
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Refer to the scenario above. If they are the only bidders in the auction and each bidder uses his optimal strategy, the maximum price the winner is likely to pay is ________
A) $210 B) $350 C) $500 D) $625
If you were building a macroeconomic model that explores the effect of an increase in income tax rates on the size of the labor force, the exogenous variable(s) would be
A) income tax rates. B) the size of the labor force. C) both income tax rates and the size of the labor force. D) neither income tax rates nor the size of the labor force.
For a resource to be able to generate sustained competitive advantage over rivals, it must be
a. Valuable b. Rare c. Difficult to imitate or substitute away from d. All of the above
Which of the following observations is not true of a budget line?
a. It indicates what choices are available to the consumer. b. It is a curve of constant expenditure. c. Its slope reports the market terms on which the consumer can trade one good for another. d. It helps examine the consumer's preferences.