If Wes in Wisconsin buys $200 worth of stock in Toshiba, and the Japanese use the $200 to buy a wheel of cheese from Wes, then the U.S. net exports:
A. and net capital outflow are both zero.
B. and net capital outflow both equal $200.
C. is zero and net capital outflow is $200.
D. equals $200 and net capital outflow is zero.
B. and net capital outflow both equal $200.
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Sjen Mavago, the economics minister of the country of X-Marks-the-Spot, has concluded that entrepreneurs are unable to generate the kind of growth the country needs. Her decision to create state enterprises might be motivated by the desire to
a. earn profit b. provide jobs for friends and relatives of government officials c. take risks d. encourage a free market e. limit government's role in the economy
If the price of a good is below the shutdown point, a perfectly competitive firm earns zero profits
a. True b. False Indicate whether the statement is true or false
If a country's trade surplus falls, its net capital outflow rises
a. True b. False Indicate whether the statement is true or false
In behavioral economics, the term salience refers to
A) relevance to the problem being investigated. B) people only consider information when it is conveyed in a subtle manner. C) how an experiment is designed. D) people consider information when it is presented in an "eye grabbing" manner.