Oceania buys $100 of wine from Escudia and Escudia buys $80 of wool from Oceania. Suppose this is the only trade that these countries do. What are the net exports of Oceania and Escudia, in that order?
a. $80 and $100
b. $-20 and $20
c. $20 and -$20
d. None of the above is correct.
b
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The two key objectives of the Fed are:
A) low and predictable levels of inflation, and interest rates above 10%. B) zero inflation, and zero unemployment. C) low and predictable levels of inflation, and maximum levels of employment. D) low and predictable levels of inflation, and zero unemployment.
Overtime worked by a JCPenney associate is considered ________ and earns ________
A) labor; wages B) entrepreneurship; profit C) human capital; interest D) labor; profit
The opportunity cost of holding currency decreases when
A) income decreases. B) the interest rate on bonds decreases. C) the interest rate on money decreases. D) wealth decreases.
A firm is concerned about the possibility of patent infringement and has hired an attorney to review patents. If the attorney is reviewing 100 patents and the marginal cost of reviewing the 100th patent is $50 and the expected marginal benefit of reviewing the 100th patent is $50, which of the following is true?
A) The firm is maximizing the total cost of infringement. B) The firm is minimizing the total cost of infringement. C) The firm's total cost of infringement will decrease if the number of patents reviewed decreases. D) The firm's total cost of infringement will decrease if the number of patents reviewed increases.