U.S manufacturing exports have declined since the 1990s
Indicate whether the statement is true or false
FALSE
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Economies of scale arise when
a. an economy is self-sufficient in production. b. individuals in a society are self-sufficient. c. fixed costs are large relative to variable costs. d. workers are able to specialize in a particular task.
The AD curve shows that, as the price level falls the quantity of
A) GDP demanded increases. B) GDP demand decreases. C) Real GDP demanded increases. D) Real GDP demanded decreases. E) none of the above
On behalf of your firm, you make frequent trips to Tokyo. You notice that you always have to pay more dollars to get your hair cut than you pay in the U.S. This observation is
a. consistent with purchasing-power parity if prices in Japan are rising more rapidly than prices in the United States. b. consistent with purchasing-power parity if prices in Japan are rising less rapidly than prices in the United States. c. inconsistent with purchasing-power parity, but might be explained by limited opportunities for arbitrage in haircuts across international borders. d. None of the above is correct.
If a corporate bond with face value of $5,000 has an interest rate of 4 percent paid once a year for a term of 30 years, what is the size of the coupon payment?
A) $4 B) $200 C) $1,250 D) $5,000