Which of the following would be an example of applied research?
A. Research into the effects of zero-gravity environments on plant life
B. Research into the use of new combustion techniques that could increase gas mileage in vehicle engines
C. Studies of the earth's climate 5,000 to 6,000 years ago
D. Research into string theory in advanced subatomic physics
Answer: B
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Adverse selection is a problem
A) unique to direct finance. B) unique to indirect finance. C) arising before a transaction is consummated. D) arising after a transaction is consummated.
A person is risk neutral if:
A. her indifference curve is concave to the origin. B. her indifference curve is convex to the origin. C. her indifference curve coincides with the expected consumption line. D. her indifference curve coincides with guaranteed consumption line.
The price of a typical basket of goods and services in one period divided by the price of the same basket in a different year is a(n)
a. price index b. TV-violence index c. employment index d. output index e. unemployment index
A decrease in U.S. interest rates relative to Japanese interest rates will
a. decrease the supply of dollars on the foreign exchange market b. increase the demand for dollars on the foreign exchange market c. increase the supply of dollars on the foreign exchange market d. cause the value of the dollar to appreciate e. cause U.S. exports to increase