One problem that investors in foreign countries face is the possibility of a decline in the value of that foreign country's currency. Which of the following would be an effective way to offset this problem?
A) Be ready to pull out at the first sign of trouble.
B) Convert as many of your dollars into their dollars as possible.
C) Hedge through currency swaps.
D) Finance your investment outside of that country.
C
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Diminishing marginal returns occur when
A) the average product of the variable input eventually diminishes. B) the marginal product of an additional worker is less than the marginal product of the previous worker hired. C) the firm hires cheap, less-skilled workers in place of expensive, high-skilled workers. D) total product diminishes.
The ________ is the chief executive body of the European Union (EU)
A) European Parliament B) European Executive Branch C) European Trade Body D) European Commission
The form of property ownership rights inherited from the colonial period was characterized by which of the following?
(a) Property ownership was almost ideal as the base for a free-market economy. (b) Property ownership established property, including land, as a "commodity" that could be easily bought and sold. (c) Property ownership proved to be an excellent vehicle for economic growth. (d) All of the above.
Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is KGC's profit at the profit maximizing sales price?
A. $30,000 B. $90,000 C. $120,000 D. -$30,000