International capital flows are purchases and sales of financial assets across national borders.
Answer the following statement true (T) or false (F)
True
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Suppose the supply curve and the demand curve both have unitary elasticity at all prices. The price increase to consumers resulting from a specific tax of $1 imposed on sellers will be
A) $1. B) 50 cents. C) zero. D) Impossible to calculate without knowing the slope of the supply curve.
Economies of scope exist when the production of one good is less costly because other related goods already are being produced.
Answer the following statement true (T) or false (F)
Consider two investors: one is risk-neutral and the other is risk-averse. How do they each assess a risk premium?
What will be an ideal response?
An increase in demand will induce entry by firms in the long run.
Answer the following statement true (T) or false (F)