The breakdown of the Bretton Woods system occurred because
a. the world economy was basically unhealthy
b. the collapse of world gold production undermined the operation of the system
c. the gold value of the dollar exceeded the exchange value, causing an outflow of the gold
d. the dollar was undervalued
e. of the greed of the highly industrialized and wealthy countries of the world
C
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When a firm or economy is operating efficiently, it is operating
A. outside its production possibilities frontier. B. inside its production possibilities frontier. C. on its production possibilities frontier. D. at the intersection of the production possibilities frontier and the vertical axis. E. at the intersection of the production possibilities frontier and the horizontal axis.
If it is impossible or very costly to prevent someone from benefiting from a good even if the person does not pay for it, the good is
A) nonrival. B) nonexcludable. C) pure. D) rival.
In recent years, "country risk analysis" has become an important part of international business. What do we mean by "country risk"? Briefly explain the factors that are involved in a country risk analysis
What will be an ideal response?
Because borrowers, once they have a loan, are more likely to invest in high-risk investment projects, banks face the
A) adverse selection problem. B) lemon problem. C) adverse credit risk problem. D) moral hazard problem.