A current account surplus
A) poses a problem if domestic savings are being invested more profitably abroad than they would be at home.
B) may pose no problem if domestic savings are being invested more profitably abroad than they would be at home.
C) may pose no problem if domestic savings are being invested less profitably abroad than they would be at home.
D) there is no relation between current account surplus and between savings and investment.
E) poses a problem if domestic savings are being invested less profitably abroad than they would be at home.
B
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A ____ total cost function implies that marginal costs ____ as output is increased
a. linear; increase linearly b. quadratic; increase linearly c. cubic; increase linearly d. a and b e. none of the above
Which of the following institutions would most likely impose price controls?
a. an environmental protection agency b. a county government c. an international corporation d. a fast-food chain
Fundamentally, countertrade is best described as a(n) ________ transaction.
A) simple B) common C) desirable D) inefficient
In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A. increase growth because they keep people producing for the local market. B. decrease growth because they slow the growth of capital. C. increase growth because they stop exploitation by foreigners. D. decrease growth because they cause inflation.