The problem of political instability has been greatest in which continent?
A. South America
B. Europe
C. Asia
D. Africa
Answer: D
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If people expect the foreign exchange rate for dollars to rise in the future
A) the demand for dollars today decreases. B) the demand for dollars today increases. C) the demand for dollars today is unaffected. D) there is a movement along the demand curve for dollars.
The new classical model has as its central idea that
A) workers and firms have rational expectations. B) wage and price stickiness explain fluctuations in real GDP. C) shifts in aggregate demand have no impact on real GDP. D) the Federal Reserve should adopt a monetary growth rule.
We might predict that Japan has a comparative advantage compared to Russia in the production of hi-tech electronics because Japan has:
A. a climate is more suitable for electronics. B. more land available to build manufacturing plants on. C. more advanced electronics technology. D. more unskilled labor available for production.
A public utility is a classic example of:
A. a natural monopoly. B. perfect competition. C. an oligopoly. D. monopolistic competition.