Foreign investment in poor nations often requires
A) low rates of return to ensure the poor have a fair deal.
B) high rates of return to justify the high risk of such investment.
C) a constantly changing political structure to enhance profit opportunities.
D) the total elimination of uncertainty in order to guarantee economic profit.
B
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In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. The slope of the aggregate expenditures model line is
A. 0.90. B. 0.80. C. 0.20. D. 0.99.
The increasing popularity of hotdogs in a food joint has pushed up their price, making it unaffordable for many students living in the surrounding areas. This is an example of a ________
A) positive externality B) negative externality C) pecuniary externality D) free-rider problem
A monopoly sells 10 units of output at $10. If the MR of the 11th unit is $4.50, then the price of the 11th unit is
A) also $10. B) $9.50. C) greater than $10. D) $7.25.
The poorest regions in the world, as measured by GDP per capita, are:
A. Latin America and the Caribbean. B. the Middle East and North Africa. C. Sub-Saharan Africa and South Asia. D. Australia and New Zealand.