Generally speaking, a country whose currency appreciates will experience, as a result,
A. Increasing interest rates from capital inflow.
B. Increased exports.
C. Reduced aggregate demand as a result of a decrease in exports.
D. Inflationary pressure from higher import prices.
Answer: C
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Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If there is an increase in the wage rate, the new equilibrium is most likely to be
A) point e. B) point d. C) point f. D) point h. E) point b.
A risk-seeker is likely to:
A. buy a government bond instead of a stock. B. put money in a savings account instead of investing in a start-up company. C. invest in a start-up company instead of putting his money under his mattress. D. put his money under his mattress instead of buying company stock.
The winner's curse is more likely
a. when there is only one bidder b. when demand for the good being auctioned is increasing c. when the value of the good being auctioned is common knowledge d. when the value of the good being auctioned is uncertain e. when the marginal cost of information is low
Each of the following is an example of capital, except
A. an office building. B. gold. C. an assembly line. D. a computer system.