Which of the following functions is not performed by financial markets?
a. facilitating large-scale production
b. reallocating spending across time
c. reducing risk through diversification
d. discovering new production techniques
e. disciplining management of corporations
D
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Refer to Table 4-4. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $9.00; Q* = 370,000 B) W* = $9.00; Q* = 740,000 C) W* = $8.50; Q* = 380,000 D) W* = $8.50; Q* = 360,000
The infant industry argument calls for active government involvement
A) only if the government forecasts are accurate. B) only if some market failure can be identified. C) only if the industry is not one already dominated by industrial countries. D) only if the industry has a high value added. E) only if the industry is independently able to earn high returns.