Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will
a. increase U.S. GNP more than it increases U.S. GDP.
b. increase U.S. GDP more than it increases U.S. GNP.
c. have no affect on U.S. GNP, but will increase U.S. GDP.
d. have no affect on U.S. GNP or GDP.
b
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Economic profits disappear quickly when a market is
A) perfectly competitive. B) monopolistically competitive. C) a monopoly. D) an oligopoly.
At the beginning of 2015, market analysts expect Atlantis Company, holder of a valuable patent, to earn the following stream of economic profits over the next five years. At the end of five years, Atlantis will lose its patent protection, and analysts expect economic profit to be zero after five years. If investors apply an annual risk-adjusted discount rate of 15%, the value of Atlantis Company in 2015 is $________, which is also the maximum price investors would be willing to pay for Atlantis Company.
A. $3,824,318 B. $1,275,000 C. $726,916 D. $2,215,000 E. $884,912
Money serves as a good store of value except when an economy experiences a period of _____.
(A) Cyclical downturn (B) Recession (C) Depression (D) Inflation
About one worker in _____ is covered by a Cost of Living Adjustment Agreement (COLA).
A. two B. four C. seven D. ten