The ______ the opportunity cost of doing something, the ______ likely it will be done
What will be an ideal response?
higher, less
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Most economists view the United States' experience with trade as
a. one from which no firm conclusions about the virtues of free trade can be reached, due to the relatively short history of international trade in the U.S. b. one from which no firm conclusions about the virtues of free trade can be reached, due to the lack of trade within the U.S. throughout most of the early history of the U.S. c. an ongoing experiment that confirms the virtues of free trade. d. an ongoing experiment that calls into serious question the notion that free trade enhances the economic well-being of a nation.
Gabrielle, an Italian citizen, uses some previously obtained dollars to purchase a bond issued by a U.S. company. This transaction
a. decreases U.S. net capital outflow. b. does not change U.S. net capital outflow. c. increases U.S. net capital outflow by more than the value of the bond. d. increases U.S. net capital outflow by the value of the bond.
Figure 10-4
In Figure 10-4, if full employment occurs at an output level of 4,000 and the economy is currently at an output level of 5,000 then we can expect a(n)
a.
increase in autonomous consumer spending that shifts the aggregate demand curve to the left.
b.
increase in wages that will shift the aggregate supply curve to the left.
c.
decrease in investment spending that shifts the aggregate demand curve to the left.
d.
decrease in wages that will shift the aggregate supply curve to the left.
Which of the following is NOT an advantage of a futures contract over a forward contract?
A) reduced counterparty risk B) increased flexibility C) lower information cost D) increased liquidity