When a government defaults on its obligations, the event is called a
A) sovereign default.
B) magisterial default.
C) private default.
D) sudden stop default.
E) national default.
A
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Which of the following statements is false?
A) An implicit cost is a nonmonetary opportunity cost. B) Economists consider all costs to be implicit costs. C) Economic costs include both accounting costs and implicit costs. D) An explicit cost is a cost that involves spending money.
Assuming the same coupon rate and maturity length, the difference between the yield on a Treasury Inflation Indexed Security and the yield on a nonindexed Treasury security provides insight into
A) the nominal interest rate. B) the real interest rate. C) the nominal exchange rate. D) the expected inflation rate.
In the long run when a perfectly competitive firm experiences positive economic profits,
A) firms exit the industry, the market supply curve shifts rightward, and the market price falls. B) firms enter the industry, the market supply curve shifts rightward, and the market price falls. C) firms exit the industry, the market supply curve shifts leftward, and the market price rises. D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.
Which of the following can be a valid reason for Canada's GDP exceeding its GNP in 2001?
a. Net factor income from abroad in Canada was negative. b. Canada's GNP measurements were flawed. c. Canada's indirect business taxes were exceptionally high. d. The World Bank underestimated Canada's net exports. e. Canada's residents received more foreign aid than they could spend.