If (X ? IM) < 0, then capital inflows
a. will be zero.
b. will be greater than zero.
c. will be less than zero.
d. can be zero, positive, or negative.
d
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The opportunity cost of buying a good includes I. the price of the good. II. the value of time spent searching for the good
A) only I B) only II C) both I and II D) neither I nor II
A countercyclical variable ________
A) moves up during expansions and down during contractions B) is another term for an acyclical variable C) moves in the same direction as aggregate economic activity D) all of the above E) none of the above
A movie producer has to decide to fund a new movie project. For this project, a success would earn $20 million and a failure would cost $60 million in lost profits. At what probability of expected success should he fund the movie?
a. 0.20 b. 0.25 c. 0.50 d. 0.75
In order to be successful in a market economy, entrepreneurs must
a. combine resources in a manner that increases their value. b. produce a good that consumers value less than the resources used to produce it. c. use only personal financial capital so they can avoid interest payments on borrowed funds. d. produce anything that consumers value, regardless of cost.