When the marginal propensity to consume foreign imports (MPCF) rises, ceteris paribus, what happens to the trade balance?
a. It increases.
b. It decreases.
c. It depends on what happens to the MPC of domestic goods.
d. It will not change.
Ans: b. It decreases.
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Identify the advantage of the corporation over sole proprietorship and partnership?
a. Small stockholders in a corporation have the ability to influence corporate policy because corporations are governed on the "one person, one vote" principle. b. Corporate income usually receives tax exemptions from the government. c. Corporations that violate environmental or workplace safety law cannot be punished. d. Corporation can survive even if ownership changes hands.
A pharmaceutical company develops a new drug for treating cancer. What type of market barrier has been created?
a. Licenses b. Patents c. Control of an essential resource d. Economies of scale
Nigeria has an absolute advantage in the production of
A. basketballs.
B. Barbie dolls.
C. both basketballs and Barbie dolls.
D. neither basketballs nor Barbie dolls.
Exhibit 6-1 Business cycle
In Exhibit 6-1, the recovery phase of the business cycle can be represented by points:
A. A. B. C. C. E to G. D. C to E.