For foreign direct investment to occur, the purchase has to be more than
A. 5 percent but less than 10 percent of shares in a business located abroad.
B. 10 percent of shares in a business located abroad.
C. 8 percent but less than 10 percent of shares in a business located abroad.
D. 2 percent but less than 5 percent of shares in a business located abroad.
Answer: B
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A large increase in the supply of HD-TV sets occurs simultaneously with a smaller decrease in its demand. As a result, the equilibrium price will ________ and the equilibrium quantity will ________.
A. decrease, increase B. increase, decrease C. decrease, decrease D. increase, increase
The above figure represents the market for teenage workers at fast-food restaurants in Kansas City
a) What is the equilibrium wage rate and employment? b) Describe the market at a wage rate of $6 per hour. c) Describe the market at a wage rate of $12 an hour. d) How would an increase in the number of young, married college graduates, who tend to eat at fast-food restaurants, affect the figure, the equilibrium wage rate, and employment?
Why is economic development a contentious subject? Use one of the controversies mentioned in the chapter to illustrate why people may not agree on the answers
What will be an ideal response?
A major problem with the negative income tax is that
a. low tax rates imply low break-even incomes. b. low tax rates imply high break-even incomes. c. high tax rates imply low minimums. d. All of the above are correct.