When a nation's national saving falls short of its domestic investment, it must be
A) experiencing a government budget surplus.
B) experiencing a government deficit.
C) a net lender to foreign nations.
D) a net borrower from foreign nations.
D
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De Beers accounts for approximately 80% of diamond sales worldwide. The source of its market power is:
A. its patent on diamond production. B. the perfectly inelastic demand for diamonds. C. the engagement customs of couples in Western cultures. D. its exclusive ownership of South African diamond mines.
If a firm has increasing returns to scale at all levels of output, then the
A. marginal cost for the firm declines over the entire range of output. B. average cost for the firm declines over the entire range of output. C. fixed costs of operation diminish to zero. D. production technology is optimized.
Are stocks and bonds considered part of the investment component of GDP?
What will be an ideal response?
A classical model of the economy predicts
A) full employment in the long run. B) a 15 to 20 percent unemployment level whenever the economy is in equilibrium. C) the same unemployment rates as the Keynesian model. D) cyclical changes in the unemployment rate.