Explain the relationship between business cycles in different countries
What will be an ideal response?
Business cycles across countries are related but not perfectly synchronized. Since countries trade with each other, if one country enters a recession this will reduce exports from other countries to the recessionary country and will have a negative effect on real GDP in the exporting countries. Also, macroeconomic shocks can be global. Oil price shocks often impact many nations at the same time, as did the financial crisis of 2007-2008. Due to factors such as these, business cycles appear to be related across countries, and in instances of global shocks, fairly synchronized as well.
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A tax imposed by a state or local government on retail sales of most products is
A) an excise tax. B) a sales tax. C) a consumption tax. D) a social service tax.
Which of the following statements about the history of inflation in the U.S. is true?
a. Inflation averaged roughly 2% from 1950-19-65, but has fallen since then. b. Inflation has averaged roughly 2% since 1950. c. Inflation averaged roughly 2% from 1950-1965, rose until the early 1980s, and has fallen slowly since. d. Inflation has gradually climbed since the 1950s.
In the above figure, what is total revenue at the profit-maximizing point?
A) $182 B) $126 C) $170 D) $176
Which of the following is a disadvantage of? corporations?
A. Longevity B. Ability to raise capital C. Liquidity D. Reporting requirements E. Limited liability