A major problem with MNEs using offshore financial centers is that they may give unfair tax advantages to companies.
a. true
b. false
a. true
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If there is a decrease in market demand for a product exchanged in a perfectly competitive industry, it results in an industry contraction that will end when the product price is
A. less than the marginal cost faced by the firms. B. greater than the marginal cost faced by the firms. C. equal to the marginal cost faced by the firms. D. greater than the average cost faced by the firms.
Which of the following is true about a nation’s production possibilities curve?
a. a point inside the curve is a combination of products that is currently impossible to produce. b. a point outside the curve is a combination of products that is below capacity. c. a rightward shift of the curve illustrates economic growth. d. full employment is illustrated by a point inside the curve.
Because the price effect is smaller when there are _________ firms, each firm will increase its quantity by __________ before the price effect and quantity effect are equal.
A. more; more B. less; more C. similar; less D. more; less
What is the most likely effect when the price level in the United States decreases relative to the price level in other countries, ceteris paribus?
a. U.S. consumers will buy more foreign goods and services, decreasing the quantity of real GDP demanded. b. Foreign consumers will buy fewer U.S. goods and services, increasing U.S. exports. c. U.S. and foreign consumers will buy more U.S. goods and services, increasing the quantity of real GDP demanded. d. U.S. and foreign consumers will buy fewer U.S. goods and services, increasing U.S. exports.