The gravity model predicts that China and India will trade with
A) smaller economies that are close by.
B) larger economies that are close by.
C) larger economies that are distant.
D) smaller economies that are distant.
B
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Refer to Figure 4-15. For each unit sold, the price sellers receive after the tax (net of tax) is
A) $20. B) $22. C) $27. D) $32.
The exchange rate is $1 = 110 yen. If the price of a Japanese good is 37,500 yen, what is the approximate price of the good in dollars?
A) $29.45 B) $4,125,000 C) $294.49 D) $340.91 E) none of the above
All other things equal, a decrease in the equity risk premium leads to a(n):
A. decrease in the present value of stock. B. increase in the required return on stock. C. decrease in dividend growth. D. increase in the price of equity shares.
When a person throws a cigarette out of a car window and starts a brush fire, this is
A. an example of a public good. B. an example of an external cost. C. an example of market power. D. an example of an external benefit.