The ability to produce a good at lower opportunity costs than another producer is known as
A. economies of scale.
B. comparative advantage.
C. marginal cost production.
D. absolute advantage.
Answer: B
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Which of the following transactions is NOT recorded in the capital and financial account?
A) foreign investment in the United States B) U.S. investment abroad C) statistical discrepancy D) net interest income
The cost of capital is:
a. concerned with what a firm has to pay for the capital b. the rate of return required by investors c. determined in the capital markets d. all of the above e. b and c only
At equilibrium
A. quantity supplied is equal to quantity demanded. B. quantity demanded is greater than quantity supplied. C. quantity supplied is greater than quantity demanded.
If a deposit of $50 in the banking system can lead to a maximum expansion in bank deposits of $250, using the money multiplier formula, the required reserve ratio must be:
A. 40 percent. B. 20 percent. C. 25 percent. D. 50 percent.