At the national level, higher saving rates lead to ________ and higher standards of living.
A. crowding out
B. greater investment
C. greater current consumption
D. slower growth
Answer: B
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Why have China and India received so much international attention and investment?
What will be an ideal response?
Given the dominant strategy of MiiTunes according to the figure, we can predict that The Rock Shop:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. will enter and enjoy profits of $4 million.
B. will enter and lose $2 million.
C. will not enter and earn $0.
D. Their actions cannot be predicted because they do not have a dominant strategy.
The opportunity cost of a decision is the value of all of the available alternatives that were not chosen
a. True b. False Indicate whether the statement is true or false
Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital. The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $360,000 per year. To receive a normal profit, the firm described above would have to
A. Earn $10,000 more in revenue. B. Experience $10,000 less in cost. C. Earn $90,000 more in revenue. D. Do nothing since it already earns a normal profit.