When a U.S. importer buys 100,000 pairs of pants from a Hong Kong company, this transaction will represent a(n)
A) inflow of money on the current account of the U.S. balance of payments. B) outflow of money on the current account of the U.S. balance of payments. C) credit on the financial account of the U.S. balance of payments. D) debit on the financial account of the U.S. balance of payments.
Warner Motors' stock is trading at $20 a share.Call options that expire in three months with a strike price of $20 sell for $1.50.What will happen if the stock price increases 10%,to $22 a share?
A) The price of the call option will increase by $2. B) The price of the call option will increase by less than $2, and the percentage increase in price will be less than 10%. C) The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%. D) The price of the call option will increase by more than $2, but the percentage increase in price will be less than 10%.
Two partners start a business.Each has two possible strategies, spend full time or secretly take a second job and spend only part time on the business.Any profits that the business makes will be split equally between the two partners, regardless of whether they work full time or part time for the business.If a partner takes a second job, he will earn $60,000 from this job plus his share of profits from the business.If he spends full time on the business, his only source of income is his share of profits from this business.If both partners spend full time on the business, total profits will be $200,000.If one partner spends full time on the business and the other takes a second job, the business profits will be $80,000.If both partners take second job, the total business profits are $20,000.
A) In the only Nash equilibrium for this game, both partners earn $70,000. B) In the only Nash equilibrium for this game, one partner earns $100,000 and the other earns $40,000. C) In the only Nash equilibrium for this game, both partners earn $100,000. D) This game has two Nash equilibria, one in which each partner has an income of $100,000 and one in which each partner has an income of $70,000. E) This game has no pure strategy Nash equilibria, but has a mixed strategy equilibrium.