Financial innovations may be expected to cause a decline in ________
A) financial frictions
B) the credit spread
C) the real interest rate on investments
D) all of the above
E) none of the above
D
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Porter argues that achieving international success in a certain industry is a function of factor endowments, domestic demand conditions, related and supported industries, and ______.
Fill in the blank(s) with the appropriate word(s).
Which of the following statements regarding the Lorenz curve is FALSE?
A) A Lorenz curve is a geometric representation of the distribution of income. B) A Lorenz curve that is perfectly straight represents complete income equality. C) The less bowed is a Lorenz curve, the less equally income is distributed. D) The more bowed is a Lorenz curve, the more unequally income is distributed.
Price differentiation is a situation in which
A) there are different prices for similar products reflecting differences in the marginal cost of providing the commodities to different groups of buyers. B) there are different prices for the same product that are not due to differences in the marginal cost of providing the commodity to different groups of buyers. C) consumers' comparison-shop. D) the demand curve is vertical.
A country with an overvalued currency
a. will have a balance of payments deficit. b. will suffer losses of foreign reserves. c. must intervene in the foreign exchange market to buy its own currency. d. All of the above are correct.