The opportunity cost of 1 wristwatch is 4 wall clocks in Japan and 2 wall clocks in Germany. If the nations split the difference between the willingness to pay and the willingness to accept, the terms of trade would be 3 wristwatches per wall clock.
Answer the following statement true (T) or false (F)
False
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The ________ is the number of unemployed divided by the labor force and the ________ is the labor force divided by the adult population
A) unemployment rate; employment rate B) unemployment rate; employment ratio C) unemployment ratio; participation rate D) discouraged worker ratio; employment rate
Economists expect the relationship between consumption and disposable income to be
a. unpredictable. b. transitory. c. fixed. d. inverse e. stable.
In general, a firm will be likely to invest as long as the
A. firm doesn't have to borrow any money to make the investment. B. profits realized from the investment are sufficient to cover the interest payments. C. interest rate is less than the inflation rate. D. firm can sell bonds directly to the public instead of borrowing from a bank.
A risk-averse person's expected utility function is
A) decreasing. B) convex. C) concave. D) a straight line.