Diversification
A) maximizes risk.
B) maximizes profit.
C) minimizes risk.
D) minimizes costs.
C
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Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 corn. If opportunity costs are constant for both countries, which of the following would NOT be a potential terms of trade?
A) 1 auto for 3 corn B) 1 auto for 4 corn C) 1 corn for 1/3 of an auto D) 1 corn for 1 auto
A variable that RBC theory is simply not interested in and seldom attempts to explain or predict is
A) employment. B) the real interest rate. C) the real wage rate. D) the price level.
What happens when a command-and-control regulation has been satisfied?
a. Polluters get a pollution charge tax break. b. Polluters have access to new marketable permits. c. Polluters have no incentive to do better. d. Polluters have many incentives to do better.
A time deposit with a fixed maturity date offered by banks is called a
A. savings deposit. B. checking account. C. corporate bond. D. small-denomination certificate of deposit.