The purchase of a firm in another country that involves the taking of management responsibility is referred to as _____
a. portfolio investment
b. foreign direct investment
c. purchasing power parity
d. open account trading
b
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The increase in the price of sugar created by the tariff will lead domestic production to increase by ________ tons per year, compared to when the economy is open without the tariff. 
A. 20 B. 10 C. 40 D. 30
Esther wants to buy a used car from her neighbor, who quotes a price of $18,000. Esther negotiates with her neighbor and offers him $16,500 for the car. This is an example of ________
A) bilateral bargaining B) collective bargaining C) arbitration D) speculation
Individuals making decisions about how much to purchase of a product with an external benefit base their decisions on which of the following?
A) the price and marginal private benefit B) the economically efficient output C) the price and the marginal social benefit D) the size of the deadweight loss
The perpetual problem in economics is:
a. our inability to work together effectively. b. our inability to satisfy everyone's wants with the available resources. c. a recognition of continual class differences. d. our inability to utilize resources efficiently. e. likely to be solved in resource-rich countries.