The substitution effect of an inferior good is positive.
a. true
b. false
b. false
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The acquisition of a domestic financial asset by a foreign resident is called
A) foreign direct investment. B) foreign capital investment. C) a portfolio inflow. D) a portfolio outflow.
If an economy spends 90 percent of any increase in real GDP, then an increase in investment of $1 billion would result ultimately in an increase in real GDP of:
a. $0. b. $0.9 billion. c. $1.0 billion. d. $10 billion.
In terms of the best practices frontier, a long term strategy
A) shifts the frontier B) moves a firm along a frontier C) may cause a firm to move inside the frontier D) may rotate the frontier toward the horizontal axis
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.