If China were to adopt a floating exchange-rate regime, it would:
A. cause the U.S. trade balance with China to fall.
B. de-stabilize the entire world economy.
C. cause the Chinese trade balance to fall.
D. force the U.S. to adopt a fixed exchange rate to maintain the balance of trade.
Answer: C
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During a recession, unemployment rises and total output of the economy rises.
Answer the following statement true (T) or false (F)
Which of the following is an example of a compensating differential?
a. Two workers with different levels of on-the-job training earn different salaries. b. Two workers whose jobs entail different working conditions earn different salaries. c. Two workers whose jobs require different levels of technical expertise earn different salaries. d. Two workers with different levels of natural ability earn different salaries.
Which is the most accurate statement?
A. The federal minimum hour wage rate puts millions of Americans above the poverty line. B. Most black families live below the poverty line. C. In 2008 the poverty rate was higher than it was in 2006. D. Welfare Reform basically eliminated poverty as a major socioeconomic problem.
The present value of a future payment:
A. varies depending on when the payment is received and the market interest rate. B. is independent of the market interest rate. C. is constant. D. is independent of when the payment is received.