Purchasing power parity is a good theory of explaining exchange rate behavior:
A. over both long and short periods.
B. over periods lasting six to twelve months.
C. over very short periods.
D. over very long periods, such as decades.
Answer: A
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Between 1981and 2003, government spending as a percentage of GDP
a. remained fairly constant at approximately 10 percent b. remained fairly constant at approximately 33 percent c. decreased from approximately 30 percent to 15 percent d. increased from approximately 15 percent to 30 percent e. increased from approximately 30 percent to 65 percent
For the most part, trade between many countries:
A. is entirely unregulated or free. B. causes the well-being of some nations to win and others to lose. C. is regulated or restricted in some way. D. is free, with the notable exception of China.
Restructuring of a major industry resulted from the:
A. U.S. Steel case. B. AT&T case. C. IBM case. D. DuPont cellophane case.
Refer to the information provided in Figure 12.1 below to answer the question(s) that follow. 
Figure 12.1 Refer to Figure 12.1. The firm is
A. equally efficient when it produces at points A and B. B. more efficient when it produces at point B than at point A. C. more efficient when it produces at point A than at point B. D. producing at least possible cost anywhere along the given ATC curve.