Describe the role of offshore banking and of offshore currency (eurocurrencies) trading
What will be an ideal response?
Both have mushroomed due to increased international trade, increased multinational corporations and globalization. Students should also emphasize banks' desire to escape domestic government regulations and taxes on financial activities and political concerns from holding deposits in the country that issued them, which increases default concerns on the part of the foreign investors, etc.
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If mining companies are indifferent between operating and not operating a quarry, that quarry is
A. discounted. B. usurious. C. marginal. D. nonexcludable.
In the long run, the equilibrium number of monopolistically competitive firms with trade:
a. is less than the total number of firms worldwide in autarky. b. is the same as the total number of firms worldwide in autarky. c. is greater than the total number of firms worldwide in autarky. d. may be less than, the same as, or greater than the total number of firms worldwide in autarky.
A forecaster used the regression equationQt = a + bt + c1D1 + c2D2 + c3D3and quarterly sales data for 1996 I - 2013 IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D1, D2 and D3 are dummy variables for quarters I, II, and III. 
What is the estimated intercept of the trend line in the second quarter?
A. 25 B. 55 C. 26.6 D. 65 E. none of the above
Refer to the above figure. If box A represents businesses and box D represents the product market in this circular flow model, then money flow in the model would be represented by:
A. (1), (3), (6), and (8). B. (1), (2), (3), and (4). C. (5), (6), (7), and (8). D. (7), (5), (4), and (2).