In the early 1990s, Serbia, a developing country, experienced hyperinflation because its central bank increased the money supply too rapidly. Serbia's central bank most likely adopted this monetary policy because:
A. it didn't care about inflation.
B. the Serbian government granted independence to the central bank.
C. the Serbian government had no other way to finance its expenditures.
D. it believed that its actions would not trigger inflation.
Answer: C
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Offshoring refers to the the process in which: a. a firm hires laborers from a foreign market
b. a firm purchases service from another firm. c. a firm purchases service from another firm in another country. d. workers of a particular country seek employment in a firm of a foreign country. e. the government of a country works toward providing social security and other rights to migrant workers.
Which of the following is NOT correct?
a. Many economist oppose increases in how much people save. b. Saving is an important long-run determinant of a nation's standard of living. c. A change in tax laws that encouraged greater saving would lower interest rates. d. Taxes on interest income can substantially decrease the future value of current saving.
A futures contract
A) gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract. B) gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract. C) is a contract in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price. D) gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
Which of the following is NOT true about a monopoly?
A. The demand curve for a monopoly's product is perfectly elastic. B. For any given quantity the price of the monopoly's product will exceed the marginal revenue from that amount. C. If the monopoly maximizes profit it will charge a price that exceeds marginal cost. D. It must adjust output until marginal revenue equals marginal cost to maximize profit.