Discuss the two different methods the Bureau of Economic Analysis (BEA) uses to place current values on foreign direct investments
What will be an ideal response?
The current cost method values direct investments at the cost of buying them today. The market value method is meant to measure the price at which the investments could be sold. These two methods can lead to different valuations because the cost of replacing a particular direct investment and the price it would command if sold on the market may be hard to measure.
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An increase in the inflation rate shifts the labor
A) supply curve to the right. B) supply curve to the left. C) demand curve to the right. D) demand curve to the left.
Reciprocity between two countries implies that
a. neither will trade with the other b. trade flows freely across the two countries' borders c. trade can only be beneficial to one of the countries d. each agree not to trade with any other countries e. you do unto others as they do unto you
It is not true in the long run of monopolies that
a. other firms seeking positive economic profit enter the market. b. they earn positive economic profit. c. they sell their output at a price greater than marginal cost. d. they benefit from barriers to entry.
Collusion always involves firms engaging in a
A) vertical merger. B) horizontal merger. C) cooperative game. D) noncooperative game.