Which of the following is not included in a nation's balance of payments?
a. International interest and dividend earnings.
b. International real estate transactions.
c. Changes in a nation's money supply due to a new required reserve ratio.
d. All of the above are included in the balance of payments.
.C
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If the interest rate goes up, what happens to the investment demand curve?
A) It shifts to the right. B) It shift to the left. C) It stays put. D) We cannot tell.
Adverse selection is due to
A) hidden characteristics. B) hidden actions. C) symmetric information. D) moral hazard.
Suppose that Industry X has two firms with equal market shares, and Industry Y has three firms with 65 percent, 30 percent, and 5 percent market shares, respectively. Which of the following is TRUE?
A) The HHI for Industry X is 50 higher than the HHI for Industry Y. B) The HHI for Industry X is 150 lower than the HHI for Industry Y. C) The HHI for Industry X is 100 higher than the HHI for Industry Y. D) The HHI is the same between Industry X and Industry Y.
When Bob's willingness to pay for a cup of coffee is $1, and the price of a cup of coffee is $1:
A. Bob is indifferent about purchasing the coffee. B. Bob will get no surplus by purchasing the coffee. C. Bob will get the same surplus whether he purchases the coffee or not. D. All of these are true.