The country of Excludania can discourage foreign investment by
a. requiring foreign investors to find a local partner who must be granted controlling interest
b. setting different exchange rates for different categories of transactions
c. heavily restricting private international borrowing and lending
d. All the answers are correct
e. None of the answers is correct
D
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Decision trees are commonly used to illustrate how firms make business decisions that depend on the actions of rival firms. A decision tree has boxes that contain points that represent when firms must make the decisions contained in the boxes
What are these points called? A) decision options B) decision nodes C) option points D) either-or terminals
It is difficult to balance the budget every year because:
A. political battles often cause blatant deficit spending that could be avoided. B. while economic downturns are easy to predict, booms are not. C. it is hard to get agreement on how to spend discretionary funds. D. it is unlikely that revenues will exactly equal planned expenditures in any given year.
For all goods other than those that are addictive, and assuming that the quantity consumed is not so large that the last units consumed generate negative marginal utilities, we can say that, for the consumer, as more of the good is consumed, its marginal utility _____ while its total utility _____
a. increases; decreases b. decreases; increases c. increases; increases d. decreases; decreases e. no general rule can be made here
One result of adverse selection in the market for used cars is:
A. more lemons (low quality) may be offered for sale than plums (high quality). B. more plums (high quality) may be offered for sale than lemons (low quality). C. few lemons (low quality) are sold. D. no used cars are sold.