In the long run, the perfectly competitive firm
A) does not have a shut down price.
B) earns only a normal profit.
C) may produce even if it suffers a loss.
D) earns an economic profit.
B
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An example of a foreign direct investment would be an Indian citizen purchasing U.S. Treasury notes
a. True b. False Indicate whether the statement is true or false
Which of the following are considered market failures?
A. Monopoly. B. Externalities. C. The lack of public goods and services. D. All of the choices are considered market failures.
A result of an exchange rate depreciation, would occur as the spending patterns change in response to a change in the exchange rate.
a. expenditure switching from domestic to foreign products b. expenditure switching from foreign to domestic products c. expenditure switching from rural to urban producers d. terms-of-trade deterioration
Between the U.S. and Nepal, Nepal invests less in new factories and equipment. This will likely cause
A. the U.S.'s production possibilities frontier to shift outward faster than Nepal's. B. Nepal's production possibilities frontier to shift inward faster than the U.S.'s. C. the U.S.'s production possibilities frontier to shift inward faster than Nepal's. D. Nepal's production possibilities frontier to shift outward faster than the U.S.'s.