Investing in things with unrelated risk is:
A. the key to diversification.
B. increasing the likelihood that a catastrophe will occur.
C. irrational.
D. None of these statements is true.
Answer: A
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Which of the following is true in the long run? a. The aggregate demand curve determines the level of potential output
b. The long-run aggregate supply curve is horizontal. c. The actual price level and the expected price level are equal. d. Cyclical unemployment is between 5 percent and 6 percent. e. The price level is determined entirely by the long-run aggregate supply curve.
Which of the following could lead to an inward shift of the production possibilities frontier?
a) an increase in the cost of one good b) an increase in the utilization of resources c) a rise in the level of technology d) a law is passed whereby a mandatory retirement age of 60 is imposed, from an original age of 65 e) a decrease in the utilization of resources
In the United States, which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?
What will be an ideal response?
When trade is free, patterns of trade and trade flows result from
A. the collective decisions of a few importers and exporters, as well as millions of private households and firms. B. the collective decisions of a few importers and exporters, as well as the governments of the countries in which they reside. C. the independent decisions of thousands of importers and exporters, as well as the governments of the countries in which they reside. D. the independent decisions of thousands of importers and exporters, as well as millions of private households and firms.