Borrowers in wealthy countries that have few domestic investment opportunities would gain if
A. capital flows between nations are prohibited.
B. all restrictions on capital flows between nations were removed.
C. factor-price equalization takes place.
D. governments set allowable interest rates.
Answer: A
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Katie finds that the marginal utility from a compact disc is 30 and the marginal utility from a pizza is 10. The price of a compact disc is $15 and the price of a pizza is $10. In order to increase her utility, Katie should
A) consume more compact discs and fewer pizzas. B) consume fewer compact discs and more pizzas. C) not change her consumption of pizza and compact discs. D) consume fewer compact discs and fewer pizzas.
Comparative advantage occurs when a person or a country can produce a good or service at a lower ____ than others
a. fixed cost b. variable cost c. opportunity cost d. total cost
Advertising attempts to influence which of the following?
a. prices of other goods b. technology c. consumers' incomes d. consumers' tastes e. supply
If stock prices follow a random walk, then stock investors can make large profits by
a. buying stocks whose prices have been falling for several days. b. buying stocks whose prices have been rising for several days. c. performing fundamental analysis of stocks using data contained in annual reports. d. using inside information.