The total rate of return on an international asset is the:
a. spot rate plus the forward rate.
b. rate of return on the asset plus or minus the expected capital gain or loss on currency changes.
c. rate of return on the asset minus commissions.
d. rate of return plus inflation minus taxes.
Ans: b. rate of return on the asset plus or minus the expected capital gain or loss on currency changes.
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Give at least three reasons why U.S. workers supply so much more labor than workers in France and other rich leader countries.
What will be an ideal response?
Marginalism is
A. the process of analyzing the additional costs or benefits arising from a decision. B. the study of how societies choose to use scarce resources. C. the best alternative that we forgo when making a decision. D. a market situation in which profit opportunities are eliminated almost instantaneously.