The possibility that changes in the value of a nation's currency will result in variations in the market value of a business's assets is referred to as
A. conversion risk.
B. foreign exchange risk.
C. hedge risk.
D. transaction risk.
Answer: B
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The main avenue by which a temporary change in government purchases in the classical model affects the labor supply is by
A) changing the population. B) affecting the value of the stock market. C) increasing business confidence. D) affecting workers' wealth.
Monopolistically competitive industries consist of
a. one firm selling several products b. one firm selling one product c. many firms, all selling identical products d. many firms, each selling a slightly different product e. many firms, each selling a completely different product
Leakages from the circular flow include saving and imports
a. True b. False Indicate whether the statement is true or false
Which of the following would NOT shift an industry's supply of labor curve?
A. Wage rates in other industries fall. B. Working conditions within the industry become less desirable. C. Wage rates in industries using similar labor rise. D. The wage rate in the particular industry falls.