Identify the basis on which you measure the liquidity of an asset.
A. Its value.
B. Its future earning potential.
C. Its convertibility into cash.
D. Its ability to act as a perfect store of value.
Answer: C
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An increase in product price implies that
A) the firm's marginal factor cost will increase. B) the wage rate the firm pays will increase. C) the firm's demand for labor increases. D) the firm's demand for labor decreases.
A large and growing current account deficit can be an indicator of a potential crisis
Indicate whether the statement is true or false
In a dual economy with limited currency convertibility:
A. neither the traditional nor the international sector tends to be dollarized. B. only the traditional sector tends to be dollarized. C. only the international sector tends to be dollarized. D. both the traditional and international sectors tend to be dollarized.
Recall the Application about how a simultaneous increase in the gasoline tax and decrease in the income tax affect gasoline consumption to answer the following question(s).Recall the Application. If a tax on carbon that increases the price of gasoline is combined with a cut in income taxes to ensure that total tax revenue collected by the government does not change, then gasoline consumption will:
A. decrease. B. stay the same. C. increase. D. will change in an unpredictable manner.