Which of the following events is likely to generate a supply of U.S. dollars in the foreign exchange market?
A) A Saudi Arabian citizen buys a condominium in New York.
B) An American student will pay her way to attend her first year of college at Oxford, England.
C) Alabama Mills exports 5,000 bales of cotton to Pakistan.
D) Hans Meyer, a German citizen, plans to spend a month in California, sampling wines
Ans: B) An American student will pay her way to attend her first year of college at Oxford, England.
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If the interest rate is 10 percent, the present value of a payment of $1,000 one year from today is
A) $900. B) $909. C) $1,000. D) $1,100.
Refer to Table 2-31. This table shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland
a. Which country has an absolute advantage in the production of cell phones? b. Which country has an absolute advantage in the production of lumber? c. What is Estonia's opportunity cost of producing one cell phone? d. What is Finland's opportunity cost of producing one cell phone? e. What is Estonia's opportunity cost of producing one board foot of lumber? f. What is Finland's opportunity cost of producing one board foot of lumber? g. If each country specializes in the production of the product in which it has a comparative advantage, who should produce cell phones? h. If each country specializes in the production of the product in which it has a comparative advantage, who should produce lumber?
An orthodox model calls for cutting government spending, reforming the tax system to increase compliance and revenues, and limiting the creation of new money
Indicate whether the statement is true or false
An increase in the plaintiff's cost of litigation will make the plaintiff ________ likely to settle and pay a ________ amount.
A) more; lower B) less; lower C) less; higher D) more; higher