Why does multinational corporation investment not necessarily offer the advantage of domestic employment expansion?
What will be an ideal response?
Capital-intensive production coupled with crowding out of local borrowers when capital
is raised locally.
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If the marginal cost for Dinky's Donuts to advertise one additional day each week in the local newspaper is $200, then Dinky's Donuts should advertize that additional day
A) until the marginal benefit the company receives reaches zero. B) as long as the marginal benefit the company receives each week is just equal to or greater than $200. C) as long as the weekly marginal cost does not rise. D) only if the marginal benefit the company receives each week is greater than $200 plus an acceptable profit margin.
The simple spending multiplier is the inverse of the marginal propensity to consume
a. True b. False Indicate whether the statement is true or false
Figure 9-3
?
In Figure 9-3, saving at equilibrium GDP is
A. $1,200 billion. B. $1,000 billion. C. $800 billion. D. $600 billion. E. $400 billion.
Monopolistic competition is inefficient because:
A. firms earn positive economic profits. B. the firms' marginal costs and marginal revenues are not equal. C. firms have excess capacity in the long run. D. entry is difficult.