If an American construction company built a road in Kuwait, this activity would be
A. excluded from U.S. GNP.
B. fully included in U.S. GDP.
C. included in U.S. GDP but not in U.S. GNP.
D. included in U.S. GNP only for that portion that was attributable to American capital and labor.
Answer: D
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If the dollar appreciates against the Mexican peso
A) U.S. exports to Mexico become less expensive. B) The value of Mexican imports to the United States does not change. C) Mexican imports to the U.S. become more expensive. D) U.S. exports to Mexico become more expensive.
Options are less than perfect as instruments to induce better performance because:
a. they are most often backdated. b. they are independent of market volatility. c. more than 90 percent of options expire worthless. d. executives often take risky decisions to raise the value of their options.
What are opportunity costs? How do explicit and implicit costs relate to opportunity costs?
In the absence of government
A. the free-rider problem is more likely to occur. B. public goods are likely to be overprovided. C. market failure is less likely to occur. D. public goods are likely to be underprovided.