A free-trade area or zone promotes:
A. Free trade among all nations
B. Free trade among member nations, but not necessarily with other nations
C. Higher tariffs worldwide, to promote more national stability
D. Higher tariffs among member nations to encourage more trade between members and non-members
B. Free trade among member nations, but not necessarily with other nations
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Which of the following would be the least likely to increase total factor productivity?
A) private investment in research and development B) increases in human capital C) the establishment of strong property rights D) increases in the population growth rate
On the graph above, if output is falling, while the quantity demanded is rising, the economy may be at a point on ________
A) the aggregate supply curve above the aggregate demand curve B) the aggregate supply curve below the aggregate demand curve C) the aggregate demand curve above the aggregate supply curve D) the aggregate demand curve below the aggregate supply curve E) none of the above
Suppose a manager is deciding whether or not to purchase a piece of equipment to make an input internally and has completed the majority of the net present value (NPV) calculations. The manager has correctly calculated the NPV to be equal to: NPV = ($1.082 × Q) - $200,000, where Q is the annual quantity of the input the firm needs. If the firm needs 175,000 units of the input each year, the
manager ________ buy the equipment because the NPV is ________. A) should; positive B) should not; negative C) should; negative D) should not; positive
An increase in unemployment insurance and other transfer payments may
A) increase the natural rate of unemployment. B) increase the number of discouraged workers. C) reduce the rate of inflation at every level of unemployment. D) lead to less unanticipated inflation.