No nation needs default on debts that call for repayment in its own currency. However, Russia astounded the financial world in 1998 by choosing to default on its
A. dollar denominated debt.
B. ruble denominated debt.
C. British sterling pounds denominated debt.
D. none of these.
Answer: B
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Knowledge that is patented is a
a. public good, whereas knowledge that is not patented is a common resource. b. private good, whereas knowledge that is not patented is a club good. c. common resource, whereas knowledge that is not patented is a private good. d. club good, whereas knowledge that is not patented is a public good.
Which of the following are accurate findings of recent studies about the effectiveness of intervention activities?
A. Smaller interventions are usually more successful than larger interventions. B. Intervention is often effective for two weeks or less in reversing the direction of the trend of the exchange rate or reducing the speed of the trend. C. The effectiveness of the intervention usually can be observed in the trend for months to come. D. Interventions are usually more effective when exercised by an individual monetary authority rather than by the authorities of two or more countries intervening jointly.
Comment on the following statement: "Average fixed cost falls as output rises, but average fixed cost will never be equal to zero."
What will be an ideal response?
Which of the following statements is false?
A) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. B) Although some individuals may not be made better off as a result of international trade, both countries may be made better off overall. C) Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. D) Not all individuals in both countries are made better off as a result of international trade.