Foreign investment can be economically beneficial for all of the following reasons except:
A. increases the GDP of the host country by giving it access to additional resources.
B. increases the GDP of the investing country by providing it with ways to earn higher returns on its capital.
C. makes the world a more efficient place by moving capital from places with low returns to places with high returns.
D. it always leads to a higher interest rate.
D. it always leads to a higher interest rate.
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A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:Production Possibilities ScheduleProductABCDEFSteel012345Wheat100907555300If the nation uses all of its resources to produce only wheat, then its production combination will be
A. A. B. B. C. F. D. E.
A situation in which money buys the same amount of goods and services in different currencies is called
A) a fixed exchange rate. B) purchasing power parity. C) exchange rate surplus. D) exchange rate equilibrium. E) exchange rate balance.
Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies
a. True b. False Indicate whether the statement is true or false
Firms gain control over price in monopolistic competition by
A. blocking entry of other firms into the industry. B. colluding with other firms to set prices. C. producing a product for which there are no close substitutes. D. differentiating their products.