In a December 2007 New York Times Column,Paul Krugman Noted

question 36

Multiple Choice

In a December 2007 New York Times column,Paul Krugman noted that

• A)it is difficult to find instances of trade between high-wage countries in the modern era.
• B)it is difficult to find instances of trade between high-wage countries and low-wage countries in the modern era.
• C)the United States now imports more oil and other raw materials from other advanced countries than from the third world.
• D)the United States now imports more manufactured goods from the third world than from other advanced countries.

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Definitions:

Call Contract

A financial derivative agreement giving the buyer the right, but not the obligation, to buy an underlying asset at a specified price before a specified date.

Break Even

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

Stock Price

The cost of purchasing a share of a company, fluctuating based on market conditions, company performance, and investor sentiment.

Maximum Loss

The highest possible amount an investment might lose.