If a strong, persistent trend in the exchange rate appears to be inconsistent with any form of economic fundamentals, it is called
A. a speculative bubble.
B. overshooting.
C. uncovered speculation.
D. exchange rate parity.
Answer: A
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Expansion of a nation's human capital can be achieved through
A) education and training. B) education and saving. C) education and technology improvements. D) education only. E) nothing because human capital is determined by the skills people are born with.
Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500.What is the marginal cost?
A. $0.63 B. $3.20 C. $1.60 D. $0.94 E. none of the above
Which of the following involves emphasizing product qualities to develop a product identity?
a. product entry b. product allocation c. product differentiation d. product homogeneity
If banks are short of reserves, the Fed funds rate will:
A. stay the same. B. increase. C. decrease. D. rise or fall; it cannot be determined with the information given.