According to the "animal spirits" described by Keynes, when optimism reigns, households and firms
a. increase spending which results in inflationary pressures.
b. decrease spending which results in deflationary pressures.
c. increase spending which results in deflationary pressures.
d. decrease spending which results in inflationary pressures.
a
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Ford opens a parts manufacturing plant in Haiti, which ships its parts back to the U.S. to be assembled in Detroit. Running the factory in Haiti is an example of:
A. foreign direct investment. B. foreign portfolio investment. C. importing. D. exporting. B. foreign portfolio investment. C. importing. D. exporting.
If two countries have production possibilities curves with different slopes, there is no possibility for gains from trade
a. True b. False Indicate whether the statement is true or false
In order to maintain high prices, a cartel must get its members to
A. develop new sources. B. leave production unchanged. C. reduce production. D. increase production.
Consider the production possibilities frontier displayed in the figure shown. Which of the following statements is true? The opportunity cost of one watermelon:
A. is zero at point C. B. is constant. C. will decrease as more watermelons are produced. D. will increase as more watermelons are produced.