Private investment from a foreign country is known as

A. development assistance.
B. foreign direct investment.
C. technical progress.
D. the cost disease of personal services.


Answer: B

Economics

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In the Utah Pie case, the economic effect of the Supreme Court decision was to:

a. prohibit the merger of two small pie companies. b. encourage competition by ruling that the national competitors had engaged in illegal price discrimination. c. encourage competition by ruling that the national competitors had not engaged in illegal price discrimination. d. discourage competition by national competitors in the Salt Lake City market.

Economics

Gross domestic product is a measure of:

a. market value of a nation's capital assets (physical capital). b. expenditures on and sales revenues derived from all goods and services exchanged during a period. c. market value of the output produced during a period. d. asset holdings of people and the happiness that they derived from the ownership of those assets.

Economics

In the equation of exchange, an increase in M of 8 percent could be accompanied by changes in velocity, the price level and real GDP of:

a. -2%, 3%, 3%. b. 4%, 0%, 4%. c. 2%, 8%, 8%. d. 8%, 8%, 4%.

Economics

Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?

a. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). b. Real GDP falls, and net nonreserve-related international borrowing/lending falls. c. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. There is not enough information to determine what happens to these two macroeconomic variables. e. Real GDP and net nonreserve-related international borrowing/lending remain the same.

Economics