A customs union is:
a. a group of countries that agrees there will be "no rules" about trade—anything goes.
b. a group of countries that agrees to eliminate customs fees and containerized shipping charges on goods traded among them.
c. a group of countries agreeing to eliminate barriers to trade between themselves but keeping tariffs in place against the rest of the world.
d. a group of countries that eliminates trade barriers among themselves and erects a common tariff against all other nations.
Ans: d. a group of countries that eliminates trade barriers among themselves and erects a common tariff against all other nations.
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A ten-year $1,000,000-face-value zero-coupon Treasury bond has a market price of __________ when the interest rate is 9.62%
A) $399,119 B) $674,844 C) $903,800 D) $962,000
For the perfectly competitive firm, price
A) equals average revenue and marginal revenue. B) equals average total cost. C) changes as output changes. D) depends on the fixed cost for the firm.
Movement along the aggregate expenditure line is caused by a change in the level of income
a. True b. False Indicate whether the statement is true or false
A capital outflow occurs when:
A. money saved in another country finances domestic investment. B. there is a positive difference between capital inflows and capital outflows of a country. C. there is a negative difference between capital inflows and capital outflows for a country. D. money saved domestically is invested in another country.