The dollar return on a foreign investment is less than the interest rate on the foreign asset, if ...

The dollar return on a foreign investment is less than the interest rate on the foreign asset, if the foreign currency depreciates against the U.S. dollar between the purchase date and the maturity date.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

How is economic value created during transactions between buyers and sellers?

QUESTION 3

Because of product differentiation, a monopolistically competitive firm:
 a. possesses some degree of market power.
 b. is very similar to a perfectly competitive firm.
  c. faces a perfectly elastic demand curve.
 d. is unaffected by the elasticity of demand.

QUESTION 4

Suppose a 10-mile taxi ride costs 6.50 in London and 10.00 in Los Angeles. If the exchange rate is 1 = 1.70 purchasing power parity holds.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

Why does the structure of a corporate business complicate the analysis of a strategy?

QUESTION 6

If monopolistically competitive firms are earning economic profits, then in the transition to the long-run equilibrium:
 a. more firms will enter the industry.
 b. prices will tend to fall.
 c. each firm will produce a smaller quantity of output.
  d. all of the above will occur.

QUESTION 7

Purchasing power parity holds when the exchange rate is equal to the product of the foreign price level and the domestic price level.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 8

Why is reliable data on the formation and survival of startups difficult to obtain?