Nations trade what they produce in excess of their own consumption to:
a. generate jobs for the domestic economy.
b. earn "good will" from the World Bank.
c. prevent chronic surpluses from driving down domestic prices.
d. acquire other things they want to consume.
e. reduce the size of their foreign trade deficit.
d
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Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and GDP Price Index rises. b. There is not enough information to determine what happens to these two macroeconomic variables. c. The real risk-free interest rate and GDP Price Index remain the same. d. The real risk-free interest rate falls, and GDP Price Index falls. e. The real risk-free interest rate rises, and GDP Price Index falls.
The largest corporate merger in the history of the world was between
A. AOL and Time Warner. B. Pfizer and Warner-Lambert. C. Vodafone Air Touch and Mannesmann. D. Exxon and Mobil.
For years, Pinnacle Roofing has been getting nails from its supplier at a rate of $10 per 2,000 nails. The supplier has just informed Pinnacle that the price of nails is going up to $11 per 2,000 nails. As a result, Pinnacle’s average total cost of operation will ______.
a. be higher b. be lower c. not change d. be unpredictable
In Probability of Injury (x-axis) versus Wage (y-axis) space, isoprofit curves slope upward because
A. workers are willing to accept a lower wage in exchange for a riskier work environment. B. profits are constant with respect to risk. C. the firm does not like to pay higher wages. D. profits increase with the number of workers the firm employs. E. in order to keep profits constant, a higher wage must be offset by the firm saving money by not investing as much in preventing on-the-job injuries.