A credible promise is:
A. possible to keep.
B. made by a honest person.
C. in the promiser's interest to keep.
D. legally enforceable.
Answer: C
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According to the figure above, if there is no income tax, the equilibrium real wage rate is ________ and the equilibrium hours of labor are ________
A) $20; 200 billion B) $30; 250 billion C) $30; 200 billion D) $35; 200 billion E) The equilibrium is not shown.
Persons whose utility functions are concave with respect to wealth are said to be
A. risk-seekers. B. risk-averse. C. risk-neutral. D. fair gamblers.
Economist Jeffrey Sachs' big push theory involves:
A. giving a one-time large amount of aid upfront, ending the need for future aid. B. developed nations concertedly pushing developing nations into following certain beneficial policies. C. a concerted effort in many areas to break the poverty trap. D. developed nations pushing away less developed nations as trading partners because in general less developed nations cannot offer any benefits to developed nations.
In international finance, speculation involves: ยท
a. not being able to make a commitment to buy or sell. b. taking a risk by purchasing (or selling) a foreign currency asset,holding it in anticipation of a rate increase (decrease). c. simultaneously buying several currencies to ensure that at least one will rise in value. d. avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.