When economists refer to capital flight, they are speaking of an:
A. outflow of financial capital from a certain country.
B. outflow of real capital from a certain country.
C. outflow of financial and real capital from a certain country.
D. outflow of human capital from a certain country.
A. outflow of financial capital from a certain country.
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Which of the following is NOT among Katharine McCormick's accomplishments?
A. She was the second woman ever to graduate from MIT. B. She invented an oral form of birth control. C. She helped to pass the 19th Amendment. D. She helped to promote female education.
Which of the following statements concerning pollution is correct?
A) Economic efficiency requires that pollution be completely eliminated. B) Economic efficiency dictates that the optimal amount of pollution arises at the point at which price equals private marginal cost. C) Pollution should be reduced to the point at which the marginal benefit from further reduction equals the marginal cost of further reduction. D) Pollution should be reduced to the extent necessary to return production to the production possibilities frontier.
Suppose the actual federal funds rate is equal to the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that
A. monetary policy will tend to produce that inflation rate. B. monetary policy is expansionary. C. monetary policy is contractionary. D. fiscal policy will result in a balanced budget.
Use the following example to review the basic incentive problem in the owner/ employee conflict. Assume perfect contracting possibilities. Chef Tom Malone is the key employee for FancyFoods. His utility is defined by U = I ? e2 and his reservation wage is $2,000 per week. FancyFoods costs = Malone's wages = $2,000 + e2 FancyFoods benefits = revenue = 300e Profits = Revenues ? Costs Compute the optimal wage bill for Chef Malone, the revenues for FancyFoods, and the profits earned by FancyFoods.
What will be an ideal response?