How might a U.S. federal budget surplus affect the balance of trade? (Assume exchange rates are stated in terms of foreign currency per U.S. dollar.)
A) A federal budget surplus raises interest rates, which raises exchange rates, and increases the balance of trade.
B) A federal budget surplus reduces interest rates, which raises exchange rates, and reduces the balance of trade.
C) A federal budget surplus raises interest rates, which raises exchange rates, and reduces the balance of trade.
D) A federal budget surplus reduces interest rates, which reduces exchange rates and increases the balance of trade.
D
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Which of the following statements is true?
A) The marginal entrant in a market earns the highest profit. B) The marginal entrant has the lowest cost among all firms in the market. C) Difference in technology and experience can lead to firms having non-identical costs even under perfect competition. D) In a market that has identical cost structures for all firms, there is possibility of positive economic profits in both the short run and the long run.
In the example of coordination problems between Google and Motorola Mobility, one method to solve the problems was
A) to undertake a merger or acquisition. B) form a joint venture. C) for one firm to subcontract with the other. D) All of the above.