Which of the following would make the effects of globalization worse for the United States?
A. China and India raise the value of their currencies.
B. China and India move up the value-added chain.
C. Wages in China and India rise, leading to more outsourcing.
D. China and India move down the value-added chain.
Answer: B
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Refer to the table above. For which of the following choices is the marginal total cost the lowest?
A) Choosing factory Close over factory Far B) Choosing factory Far over factory Very Far C) Choosing factory Very Close over factory Close D) Choosing factory Close over factory Very Far
At a price of $5, consumers buy 200 units of good X. When the price falls to $4, quantity demanded increases to 250 units. We can conclude that over this range, demand is:
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic.
This year a new oil field with substantial reserves has been discovered. Such discoveries are not made every year. Therefore an increase in the demand for oil will:
A) increase the long-run price of oil more than the short-run price of oil. B) increase the long-run price of oil less than the short-run price of oil. C) ensure the long-run price of oil and short-run price of oil increase by the same amount. D) ensure that the short-run price of oil falls. E) ensure that the short-run price of oil remains unchanged.
One reason investors may prefer bonds over stocks is
a. potential profits are larger b. bond prices never vary c. bondholders get paid before stockholders d. owning bonds implies owning a part of the company e. interest rates do not affect the value of bonds