Net capital inflows equal:
A. domestic production.
B. capital outflows minus capital inflows.
C. international production.
D. capital inflows minus capital outflows.
Answer: D
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In a Duopoly Nash-Cournot equilibrium,
A) neither firm has an incentive to change its output level given the other firm's output decision. B) firms will choose the pair of quantities above the intersection of the two best response functions. C) firms will choose the pair of quantities below the intersection of the two best response functions. D) firms will choose its quantity regardless of the other firm's output decision.
Which of the following offers an example of structural unemployment?
a. The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-term decline in horse-and- buggy transportation. b. The rise in unemployment among farm workers after harvest. c. The unemployment associated with workers changing jobs. d. The increase in unemployment during recessions.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and real GDP rises. b. The real risk-free interest rate rises, and real GDP remains the same. c. The real risk-free interest rate and real GDP remain the same. d. The real risk-free interest rate falls, and real GDP falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following would be the most likely candidate for direct application of the benefits principle of taxation?
A. Education B. Fire protection C. Police protection D. Use of roads