An open economy is a national economy that
A) doesn't interact economically with the rest of the world.
B) has a stock market that is open to traders from anywhere in the world.
C) has extensive trading and financial relationships with other national economies.
D) has established diplomatic relations with most other national economies.
C
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A game in which one player's winnings equal the other player's losings is called a
A) tit-for-tat game. B) all-or-nothing game. C) fair-and-balanced game. D) zero-sum game.
An antitrust agency is identifying the product market for Good X and determines that Good X and Good Y have a cross-price elasticity of 0.01. As a result of the cross-price elasticity, the antitrust agency is likely to ________ Good Y from Good X's product market as the products ________ compete as close substitutes.
A) exclude; do B) include; do C) exclude; do not D) include; do not
What is the cost of money?
(A) The economy's use of open market operations. (B) The bank's use of money creation. (C) The smoothing out of fluctuations in the market. (D) The price of the interest rate
Suppose a manufacturer of software develops a new computer program that sells for $50. The $50 cost includes $0.25 for the CD it is stored on, $5 for the labor of the company software programmers, and $1.75 for packaging materials and transportation costs. Value added by the software company is
A) $49.75. B) $48.25. C) $48. D) $44.75.