Purchasing a profitable supplier increases profit only if
a. You pay equal to the value of the company's inventory
b. You pay higher than the value of the company's future profits
c. You pay lower than the value of the company's discounted future profits
d. You pay lower than the value of the company's undiscounted future profits
c
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In 2006, the European Union tariff on imported bananas from Latin America was €176 a ton. Suppose 2
5 million tons of bananas were imported in 2006 but then the tariff decreased to €152 a ton in 2007 and as a result, 3 million tons were imported in 2007. What is the tariff revenue in 2007? A) €445,000,000 B) €528,000,000 C) €440,000,000 D) €375,000,000
Consider the case of time fixed effects only, i.e., Yit = ?0 + ?1Xit + ?3St + uit,
First replace ?0 + ?3St with ?t. Next show the relationship between the ?t and ?t in the following equation Yit = ?0 + ?1Xit + ?2B2t + ... + ?TBTt + uit, where each of the binary variables B2, …, BT indicates a different time period. Explain in words why the two equations are the same. Finally show why there is perfect multicollinearity if you add another binary variable B1. What is the intuition behind the fact that the OLS estimator does not exist in this case? Would that also be the case if you dropped the intercept? What will be an ideal response?
The debt burden can be passed on to future generations if public debt is
a. deflationary b. converted into paper currency c. turned into private debt d. an external debt e. crowded out
For an economy as a whole, net exports must equal minus one times net capital outflow
a. True b. False Indicate whether the statement is true or false