Kari lives in a country where economic growth has been flat for the past eight years, but the population has increased by 2 percent over this same period. What has most likely happened in Kari’s country?
a. Wages have declined by 2 percent.
b. The standard of living has declined.
c. The GDP per capita has increased.
d. The nation’s production of goods has increased steadily.
b. The standard of living has declined.
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The most important source of financial capital for firms today is
A) sale of bonds. B) sale of new issues of stock. C) trade of previously issued stock. D) reinvestment of profits.
Imagine you own an ice cream store in New York City. Unpredictable inflation hurts your business because:
Four propane delivery firms have a tacit agreement to charge a service fee of $50 in addition to $5 per gallon of propane. If the firms' cost of propane increases and one of the four firms advertises that it will increase the cost of a gallon of propane to $5.50 next month, this is an example of ________.
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Currencies depreciate and appreciate all the time. Who gains and who loses when the Mexican peso depreciates?
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