How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 1.50 dollars per British pound? A) 10 British pounds B) 20 British pounds C) 30 British pounds D) 35 British pounds E) 25 British pounds ANSWER C
Date: September 10th, 2020
In effect, the U.S. does subsidize high-tech firms by subsidizing R&D. This is done through A) the budget of the Department of Education. B) systematic protection through the levying of tariffs. C) systematic protection through the establishment of NTBs. D) relatively accelerated “depreciation” of R&D investment in the Federal tax codes. E) subsidies for high-tech […]
Date: September 10th, 2020
Ultimate solutions to the problems of unsustainable debt must take into account the incentives for lenders to make loans. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
There is no possibility of further widening of the European Union. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Interest earned on foreign holdings of U.S. federal, state and local government debt are recorded in the A) services account. B) merchandise account. C) transfers account. D) capital account. ANSWER C
Date: September 10th, 2020
According to the factor price equalization theorem, free international trade will result in wages equating rents worldwide. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________. A) increase; average price; decrease B) increase; average price; increase C) increase; average cost; decrease D) decrease; markup; decrease E) increase; marginal cost; decrease ANSWER A
Date: September 10th, 2020
Intra-industry trade is most common in the trade patterns of A) the industrial countries of Western Europe. B) the developing countries of Asia and Africa. C) raw material producers. D) China with the rest of the world. E) labor-intensive products. ANSWER A
Date: September 10th, 2020
The fact that 10 additional nations joined the European Union in May 2004 is an example of deepening. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
With flexible exchange rates, perfect asset substitutability, and perfect capital mobility, expansionary monetary policy will cause A) income to rise, interest rates to fall, and the domestic currency to depreciate. B) income to fall, interest rates to rise, and the domestic currency to appreciate. C) income to rise, interest rates to remain unchanged, and the […]
Date: September 10th, 2020
