A country is using a beggar-thy-neighbor policy whenever:
A) it uses contractionary monetary policy to attract capital inflows from other countries.
B) it devalues its currency to improve its macroeconomic position at the expense of its trading partners.
C) it revalues its currency to improve its macroeconomic position and that of its trading partners.
D) it cooperates with other countries in establishing its monetary policy.
Ans: B) it devalues its currency to improve its macroeconomic position at the expense of its trading partners.
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As the capital-labor ratio increases, break-even investment
A) increases at a decreasing rate. B) increases at an increasing rate. C) increases at a constant rate. D) remains unchanged.
Which of the following statements best describes the relationship between GDP and standard of living?
a. GDP does not understate or overstate the standard of living. b. GDP may understate the standard of living. c. GDP may understate or overstate the standard of living. d. GDP may understate the standard of living.
A surplus in a labor market exerts an upward pressure on the equilibrium wage rate
a. True b. False Indicate whether the statement is true or false
You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. Should you go see a movie or work as a math tutor?
A. You should do neither. B. Both options are equally good. C. You should go to the movies. D. You should work as a math tutor.