The benefits of net capital inflows to a country include all of the following except:
A. interest and dividend payments owed to foreign investors.
B. a potentially higher growth rate.
C. a higher rate of investment in new capital.
D. a larger pool of total savings.
Answer: A
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According to your authors, entrepreneurial innovation is similar to arbitrage because both activities ultimately involve
A) obtaining inputs at relatively high prices and selling the output at lower prices. B) obtaining inputs at relatively low prices and selling the output at higher prices. C) the absence of uncertainty. D) the presence of perfect and complete information.
According to Ricardian Equivalence, crowding-out ________
A) is incomplete B) will raise the level of domestic income C) is complete D) does not play a role in influencing private investment levels
In the classical model, how do shifts in aggregate demand affect real GDP?
A) Real GDP will remain unchanged. B) Increases in aggregate demand increase real GDP. C) Increases in aggregate demand decrease real GDP. D) Decreases in aggregate demand increase real GDP.
Which of the following statements is not true? a. If social cost and private cost are the same, any externality that exists will be positive
b. If external costs are not zero, externalities exist. c. If somebody could buy the Pacific Ocean, fewer dolphins would be killed in fishing nets. d. Every production process generates market failure. e. When pesticides are used in producing food, the quantity of food produced is greater than the socially optimal level.