Suppose that you desperately need a grade of "A" from your International Finance course and further suppose that it depends upon the grade that you will get from the term paper that you write on PPP
Let's assume that you know that your teacher believes that PPP holds anytime anywhere. What kind of evidence would you submit that would indicate that PPP holds? In other words, what kind of countries and data would you choose for your analysis to bias the empirical results regarding PPP?
Choose the data from:
? high inflation countries with diversified trade (i.e., open economy)
? annual data
? countries with less-developed financial markets (i.e., LDCs)
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Which of the following is the best definition of economic growth?
A) the opportunity cost of capital B) the sustained expansion of production possibilities C) the investment in capital and consumption goods by an economy D) increased development of land and entrepreneurship E) the opportunity cost of consumption
A firm is making zero economic profits. From this, we know that
A) the firm is going to go out of business. B) implicit costs are zero. C) the firm is going to stay in business, but will not be able to attract new financial capital. D) the firm will stay in business since it is covering all relevant opportunity costs.
When we assume that investment is autonomous we imply that:
a. it is a fixed constant amount. b. it is independent of current real GDP. c. it is a positive function of interest rates. d. it is actually zero. e. it has no impact on consumption.
The labor force includes:
a. employed workers but excludes persons who are officially unemployed. b. employed workers and persons who are officially unemployed. c. full-time workers but excludes part-time workers. d. permanent employees but excludes temporary employees.