According to purchasing power parity, which of the following is FALSE about an overvalued dollar compared to the Japanese yen?
A) U.S. merchants would be motivated to import more Japanese goods.
B) Japanese merchants would tend to export more to the United States.
C) Prices in the United States would tend to fall.
D) Over the long term, the exchange rate would fall.
D
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Each member of a cartel
A) agrees to reduce output lower than it would if it were acting independently. B) is operating illegally in every country in which it is doing business. C) sets output independently of the impact on other members. D) makes less money than it otherwise would.
Volume, as reported in stock tables, refers to the
a. number of shares traded. b. percentage of shares outstanding traded. c. number of shares traded times the price they sold at. d. number of shares of a company traded divided by the shares of all companies traded.
A person who has auto insurance is likely to drive a little less safely and to take less care in parking their car in a safe place off the street. This is an example of a problem called:
A. externality. B. signaling. C. moral hazard. D. adverse selection.
The function of an entrepreneur is: (check all that apply)
a. to maximize the welfare of society. b. to avoid risks and prevent the commercialization of new products and ideas. c. to make strategic business decisions. d. to combine the resources of land, labor, and capital to produce a g