The purchase of less than 10 percent of the shares of ownership in a foreign company is referred to as a
A) negligible investment. B) foreign indirect investment.
C) foreign direct investment. D) portfolio investment.
D
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Using the II-XX framework, show using a figure that fiscal policies by themselves cannot bring the economy to both internal and external balances
What will be an ideal response?
In the early 1930s
A) countries that abandoned the gold standard suffered severe inflation. B) countries that tried to defend the gold standard suffered more depression than countries that abandoned the gold standard. C) the gold standard was abandoned by every major industrial country except England. D) the United States was the first major industrial country to abandon the gold standard.
Suppose Katie, Kendra, and Kristen each purchase a particular type of cell phone at a price of $80 . Katie's willingness to pay was $100, Kendra's willingness to pay was $95, and Kristen's willingness to pay was $80 . Which of the following statements is correct?
a. For the three individuals together, consumer surplus amounts to $35. b. Having bought the cell phone, Kristen is better off than she would have been had she not bought it. c. Had the price of the cell phone been $95 rather than $80, Katie and Kendra definitely would have been buyers and Kristen definitely would not have been a buyer. d. The fact that all three individuals paid $80 for the same type of cell phone indicates that each one placed the same value on that cell phone.
Buyers and sellers use ________ to communicate the quality of goods and services in a world of uncertainty.
A. asymmetric information B. moral hazards C. expected value D. market signals