A country has $100 million of net exports and $170 million of saving. Net capital outflow is
a. $70 million and domestic investment is $170 million.
b. $70 million and domestic investment is $270 million.
c. $100 million and domestic investment is $70 million.
d. None of the above is correct.
c
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Jenny sells lemonade in front of her house in the summer. Several other kids in Jenny's neighborhood also run lemonade stands in the summer. The lemonade market in Jenny's neighborhood is more likely to be perfectly competitive if:
A. each lemonade stand sells the same kind of lemonade. B. some of the neighborhood parents build elaborate booths for their kids' stands while some kids sell from makeshift tables. C. each stand tries to get more customers by offering different varieties of lemonade and snacks. D. all of the kids advertise heavily.
Explain the Coase theorem. In order for the Coase theorem to be applicable, explain which three conditions must be satisfied. Give an example to show how the Coase theorem can be applied
What will be an ideal response?
Suppose the market supply curve is upward sloping and market demand is perfectly inelastic. If the market price is held above the equilibrium level, which of the following statements about the resulting outcome is not true?
A) The decrease in consumer surplus is fully captured by the producers. B) There will be an excess quantity supplied. C) Quantity demanded will remain the same. D) Quantity demanded will decline.
Which of the following are the two categories of investment measured in the expenditure approach?
a. durable investment; nondurable investment b. fixed investment; inventory investment c. capital investment; noncapital investment d. gross investment; net investment