Why do free trade proponents applaud successful trade deflection?
A. It circumvents trade restrictions within regional trade blocs.
B. It promotes more rules of origin laws.
C. It decreases incentives for trade diversion.
D. It increases trade restrictions within regional trade blocs.
Answer: A
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Inducements to act in particular ways are called
A) collusive tactics. B) incentives. C) trade-offs. D) opportunity costs.
The members of Federal Reserve district bank boards of directors appointed by the Board of Governors are known as
A) Class A directors. B) Class B directors. C) Class C directors. D) Class D directors.
Opportunistic behavior on the part of the employer is possible because:
a. contracts are often incomplete and leave room for implicit understandings between the two parties. b. employees often reduce their effort level if they are important to the company. c. it is difficult to monitor all employees and their performances. d. good quality work can be easily measured.
Which of the following tools is used most often by the Fed for changing the supply of money?
A. Interest rate B. Discount window C. Open market operations D. Reserve requirement