A higher saving rate will promote capital deepening
Indicate whether the statement is true or false
TRUE
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One of the limitation of Five Forces is that
a. These tools reduce producer surplus b. For one firm to increase profit, it takes it from other participants in the industry c. Does not provide a firm with sustainable competitive advantage d. Both b and c
We measure GDP in different ways because
a. we can then check for errors and gain different insights into how the economy performs b. certain economists do not like the expenditure approach for GDP c. the expenditure equation ignores certain aspects of the economy d. it is too difficult to determine accurate values of consumption and investment e. the particular situations of different countries require different approaches
If the returns of two assets are perfectly positively correlated, an investor who puts half of his/her savings into each will:
A. not gain from diversification. B. reduce risk but lower the expected return. C. have a higher expected return. D. reduce risk.
The individual with the highest valuation of the good will win in which of the following auctions?
A) English Auction B) Dutch Auction C) Sealed Bid Auction D) All of the above.