Which of the following is NOT a correct description of opportunity cost of capital?
A) It is the normal rate of return on investment.
B) It is normally included in accounting costs.
C) It is the income sacrificed by not investing in another firm.
D) It is an implicit cost.
B
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Fill in the blank: a combination of two goods that lies beyond the production possibilities frontier ________
A) can be produced with the current set of resources B) cannot be produced with the current set of resources C) can never be produced with any set of resources D) can be produced but only if the producer becomes more greedy
A sign that Country A is under pressure to appreciate its currency is its:
a. Current account is in surplus. b. Overall balance is in surplus. c. Capital account is in surplus. d. Overall balance is in deficit. e. Reserves account is in surplus (i.e., positive).
When there is no comparative advantage between countries
A. the benefits resulting from trade are increased. B. there are no gains from specialization and trade. C. there must be an absolute advantage. D. each should try and specialize in the production of a particular commodity.
Which of the industries listed below relies the most on patent protection to recoup its investments on research and development?
A. the pharmaceutical industry B. the dairy industry C. the restaurant industry D. the citrus industry