Purchasing power parity exists when domestic currency:
a. maintains a fixed exchange rate with foreign currency.
b. is not convertible into foreign currency.
c. buys more goods at home than abroad.
d. buys as many goods at home as it does abroad.
e. appreciates in value against foreign currency.
d
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If net foreign investment in the United States is negative, how must national saving and domestic investment be related?
A) Domestic investment can be greater than or less than national saving. B) Domestic investment and national saving must also be negative. C) Domestic investment must be less than national saving. D) Domestic investment must be greater than national saving.
If a pre -merger Herfindahl-Hirschman Index (HHI) is greater than ________, the market is considered not competitive and any merger receives a high level of scrutiny.
A) 1,500 B) 5,500 C) 500 D) 2,500
When the government imposes a barrier to entry in a market,
a. more resources will be wasted by firms attempting to secure and maintain market power. b. the options available to consumers will increase in the protected market. c. allocative efficiency will be improved by the reduction of wasteful competition. d. consumers will be better able to direct the smaller number of producers to serve their interests.
Micro and macro failures of the marketplace never justify government intervention.
Answer the following statement true (T) or false (F)