The amount by which the expected return on a risky asset exceeds the return on an otherwise comparable safe asset is known as the
A) CDS spread.
B) risk premium.
C) VIX.
D) term spread.
B
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A rise in domestic productivity tends to __________ domestic prices and causes the dollar to __________ relative to foreign currencies
A) raise; appreciate B) raise; depreciate C) lower; appreciate D) lower; depreciate
Most economists believe that the poor economic performance of countries located in tropical areas is primarily the result of
a. the hot climate that saps the energy of people in tropical countries. b. the poor institutional quality in most tropical countries. c. the lack of natural resources in most tropical countries. d. the failure of rich countries to provide foreign aid to tropical countries.
The accompanying figure shows Avery's weekly production possibilities curve for scarves.
For Avery, the opportunity cost of making a red scarf is:
A. decreasing. B. 1 blue scarf. C. increasing. D. zero.
If labor and capital are substitute resources in production, an increase in the price of capital will
A. increase the wage rate and decrease the number of workers hired. B. decrease the wage rate and increase the number of workers hired. C. decrease the wage rate and decrease the number of workers hired. D. increase the wage rate and increase the number of workers hired.