Bob, a Greek citizen, opens a restaurant in Chicago. His expenditures
a. increase U.S. net capital outflow and have no affect on Greek net capital outflow.
b. increase U.S. net capital outflow and increase Greek net capital outflow.
c. increase U.S. net capital outflow, but decrease Greek net capital outflow.
d. decrease U.S. net capital outflow, but increase Greek net capital outflow.
d
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Prices are useful in coordinating society’s economic planning because
A. they convey information about which goods are scarce and which are plentiful. B. economies based on price systems are more flexible than centrally planned economies. C. economies based on price systems are more likely than centrally planned economies to minimize the cost of producing society’s output. D. All of the responses are correct.
Markets for pollution rights:
a. have never been tried in the United States
b. assign property rights to those who value them least
c. allow the government to assign property rights
d. enable those who value them most to pollute
e. are less efficient than pollution standards
An oligopolistic price leader increases the price of its product. If all other firms follow the leader's example, the price leader will:
A. decrease its price. B. maintain its new price. C. increase its price. D. increase its quantity of output.
Each of the following is a source of financial capital for a corporation EXCEPT
A) issuing new stock. B) reinvestment of profit or retained earnings. C) issuing bonds or borrowing funds from a bank. D) dividends.