When the benefits to society of using a product exceed benefits to the user,
a. the product should be strictly regulated
b. the product should be taxed
c. the product provides a positive externality
d. the product is overproduced at the privately determined equilibrium
e. in time the product will not be produced
C
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With fixed exchange rates, perfect asset substitutability, and perfect capital mobility
A) the LM curve is horizontal. B) the LM curve is vertical. C) the BP curve is horizontal. D) the BP curve is vertical.
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
According to the above table, if real Gross Domestic Product (GDP) equals $25,000, what is the average propensity to save?
A. 0.88 B. 0.0 C. 0.12 D. 0.56
Foreign direct investment implies that the investor obtains ________ share in a foreign company's ownership.
A. less than 10 percent B. less than 1 percent C. less than 5 percent D. none of these