One reason for computing the logarithms (ln), or changes in logarithms, of economic time series is that
A) numbers often get very large.
B) economic variables are hardly ever negative.
C) they often exhibit growth that is approximately exponential.
D) natural logarithms are easier to work with than base 10 logarithms.
Ans: C) they often exhibit growth that is approximately exponential.
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If a French company sells 1000 gallons of Perrier to a U.S. company at 5 euros per gallon, and uses the money to buy stock in a Spanish cork company, how does this affect the French balance of payments accounts?
A) Decrease in financial account; increase in merchandise trade B) Decrease in merchandise trade; increase in financial account C) Decrease in net investment income from abroad; increase in financial account D) Decrease in merchandise trade; increase in net income from abroad
A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:
a. create unnecessary unemployment. b. shift in labor supply curve leftward. c. decrease the marginal product of labor. d. reduce management's use of featherbedding.
Differences in earnings between racial groups is due in part from differences in:
A. ability to achieve. B. educational attainment. C. geographical location. D. None of these is true.
Why is a futures contract considered valuable by both producers and consumers?