A British investor buys $40,000 worth of stocks in the U.S. stock market. For the U.S. we would predict ________.
A. aggregate demand will fall
B. aggregate supply will rise
C. aggregate demand will rise
D. aggregate supply will fall
Answer: A
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Domestically produced goods and services sold to other countries are referred to as
A) imports. B) capital outflow. C) exports. D) transfer payments.
Additions to the nation's capital stock are brought about through
A) the current account surplus. B) investment. C) investment and the current account surplus. D) investment and the government budget surplus.
Mr. and Mrs. Jones want to invest for their retirement by buying stocks. Mr. Jones has heard about an up-and-coming stock and wants to invest $10,000 in it. Mrs. Jones thinks it would be more prudent to invest $10,000 in a mutual fund because it would be _____________ and therefore ______________.
a. quicker/more profitable b. diversified/less risky c. easier to understand/have a greater return d. collectible/earn equity
Consider a production possibility frontier with books and tables. A combination of 1000 books and 500 tables is on the frontier. Which of the following are true?
i. Production of 700 books and 400 tables is attainable but inefficient. ii. Production of 1000 books and 600 tables is unattainable. iii. Production of 500 books and 1000 tables is inside the frontier. A) i, ii and iii B) i only C) i and iii D) ii and iii E) i and ii