Economic losses mean that firms will exit from a market in the short run.
Answer the following statement true (T) or false (F)
False
An investment decision is the long-run decision to build, buy, or lease plants and equipment, or to enter or exit an industry.
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When the Fed lowers the federal funds rate and the real interest rate falls, what happens to the opportunity cost of investment? What happens to investment?
What will be an ideal response?
Which of the following would not be counted in the U.S. BOP current account?
a. Helen, an American oil engineer, is a paid adviser to Middle Eastern countries in the area of petroleum extraction. b. General Motors Corporation owns buildings that are situated in Mexico. c. France purchases a new jet fighter aircraft from the Boeing Company in the U.S. d. Martha receives a $50 dividend check on stock she owns in a business in Germany. e. A wealthy Italian purchases numerous antiques in the United States for his villa.
If different people own the different stages of production of a commodity, a contract or market relationship helps to minimize transaction risks and creates economic value
Indicate whether the statement is true or false
Assume that Spain can produce a commodity using fewer resources than any other country. Spain will export this commodity even if other countries have a lower opportunity cost of producing it
a. True b. False