When a Japanese auto maker opens a factory in the U.S., U.S. net capital outflow
a. increases because the foreign company makes a portfolio investment in the U.S.
b. declines because the foreign company makes a portfolio investment in the U.S.
c. increases because the foreign company makes a direct investment in capital in the U.S.
d. declines because the foreign company makes a direct investment in capital in the U.S.
d
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To calculate the total utility of consuming N quantity of a product:
A. add the total satisfaction of consuming each product up to N. B. multiply the additional satisfaction from consuming the Nth product by its price. C. add the additional satisfaction of consuming each product up to N and multiply by its price. D. multiply total satisfaction from consuming N products by N.
Compared to ideal economic efficiency, when the production of a good generates external costs, competitive markets will result in an output that is too:
A. large and a price that is too high. B. large and a price that is too low. C. small and a price that is too high. D. small and a price that is too low.
Which of the following is NOT an example of natural monopoly?
A. water systems B. electricity transmission C. local telephone services D. farm products
If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could
A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market. B) appeal to firms' environmental conscience to pollute less. C) subsidize production. D) rely on the Coase Theorem.