THE CASE STUDY BELLOW WIILL HELP TO ANSWER THE QUESTION

Lou Jiwei, Chief Investment Officer of China, is perhaps the most influential person in the U.S. economy today. He oversees the $1,250 trillion or so Chinese investment fund, which mostly consists of U.S. treasuries. Because he is investing heavily in the U.S. government (about two-thirds of the fund), we have very low interest rates. This is good for the U.S. as long as the positive economic party continues. But what happens if the music stops?[19]

Many do not believe the Chinese will cause a major disruption to the world financial markets. The author expects very little from them until after the Beijing 2007 Olympic Games. After the Olympics, many anticipate changes more in line with their recent $3 billion investment in the Blackstone Group, which purchases U.S public companies and privatizes them. The Chinese see this as a logical first step considering the xenophobic view from America when the Chinese tried to buy Union Oil Company of California directly.[20]

It is possible that the Chinese will economically squeeze America. However, if China is economically rational, they will force the point over the long run until America becomes of little importance to the world while China ascends.[21]Two centuries ago, Napoleon Bonaparte stated it so well: "When China awakens the whole world will tremble.Lou Jiwei, Chief Investment Officer of China, is perhaps the most influential person in the U.S. economy today. He oversees the $1,250 trillion or so Chinese investment fund, which mostly consists of U.S. treasuries. Because he is investing heavily in the U.S. government (about two-thirds of the fund), we have very low interest rates. This is good for the U.S. as long as the positive economic party continues. But what happens if the music stops?[19]

Many do not believe the Chinese will cause a major disruption to the world financial markets. The author expects very little from them until after the Beijing 2007 Olympic Games. After the Olympics, many anticipate changes more in line with their recent $3 billion investment in the Blackstone Group, which purchases U.S public companies and privatizes them. The Chinese see this as a logical first step considering the xenophobic view from America when the Chinese tried to buy Union Oil Company of California directly.[20]

It is possible that the Chinese will economically squeeze America. However, if China is economically rational, they will force the point over the long run until America becomes of little importance to the world while China ascends.[21]Two centuries ago, Napoleon Bonaparte stated it so well: "When China awakens the whole world will tremble.Lou Jiwei, Chief Investment Officer of China, is perhaps the most influential person in the U.S. economy today. He oversees the $1,250 trillion or so Chinese investment fund, which mostly consists of U.S. treasuries. Because he is investing heavily in the U.S. government (about two-thirds of the fund), we have very low interest rates. This is good for the U.S. as long as the positive economic party continues. But what happens if the music stops?[19]

Many do not believe the Chinese will cause a major disruption to the world financial markets. The author expects very little from them until after the Beijing 2007 Olympic Games. After the Olympics, many anticipate changes more in line with their recent $3 billion investment in the Blackstone Group, which purchases U.S public companies and privatizes them. The Chinese see this as a logical first step considering the xenophobic view from America when the Chinese tried to buy Union Oil Company of California directly.[20]

It is possible that the Chinese will economically squeeze America. However, if China is economically rational, they will force the point over the long run until America becomes of little importance to the world while China ascends.[21]Two centuries ago, Napoleon Bonaparte stated it so well: "When China awakens the whole world will tremble.

Question ten.

1.The majority of firms, ____________ when creation economic pronouncements are least likely to take explanation of______________

2.In economic theory of ________ ,it is expected that employees seek to___________

3.The impartial of economic movement is to____________

4.Which one of the following phrases is normally a feature of a positive statement?

5.Commercial possessions _______-- are persons which_____________________

6.The factor of production, land, includes

7.Employment is_________ a factor of production because_______

8.The factor of production, __________ capital includes_____________

9.The core function of the factor of production known as enterprise includes

10.Which one the following is least likely to be a scarce resource?