Hold-up problems usually occur when
a. One of the parties makes a heavy investment in equipment specific to its trading partner
b. One of the firms decides to invest heavily in general purpose equipment
c. Costs are avoidable
d. Costs are incurred
a
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During this year, a country reports imports of $1,000 billion, exports of $1,100 billion, foreign investment in the country of $900 billion, investment abroad of $1,200 billion, net interest and net transfers of zero
What is the country's current account balance?
If firms increase investment, the aggregate expenditures function will shift upward, other things being equal
a. True b. False Indicate whether the statement is true or false
Which of the following represents a consumer's optimum?
a. MUx/MUy = Py/Px b. MUx/Py = MUy/Px c. MUx/Px = MUy/Py d. MUy/MUx = Px/Py
Which of the following is NOT among the features that were phased in gradually during the integration of new members in the European Union (EU)?
A. The new members were allowed to impose a nominal tariff on the imports from the other members to stabilize themselves for the first several years. B. The citizens of the new members were not generally free to work in most other EU countries until several years after the country joined the EU. C. The new members were not full members of the common market for labor. D. The subsidies that the farmers of the new members receive started at only one-fourth of the standard levels for the common agricultural policy.