What are the major factors that a country should weigh in deciding whether a particular foreign investment should be permitted?
What will be an ideal response?
The answer involves weighing the benefits such as new capital, technology, employment, etc. against perceived problems as outlined in the chapter. There should be recognition of the host government's role in setting the environment in which benefits and costs are determined.
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Which of the following best characterizes the profit of a buyer of a futures contract?
A) spot price at settlement minus futures price at purchase B) futures price at settlement minus spot price at purchase C) futures price at purchase minus spot price at settlement D) spot price at purchase minus futures price at settlement
Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and demand deposits are the only form of money. A commercial bank receiving a new demand deposit of $100 would be able to extend new loans in the amount of:
a. $10 b. $90. c. $100 d. $1,000.
The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the:
A. Manager B. Entrepreneur C. Stockbroker D. Banker
Which of the following is a determinant of the price elasticity of demand for an item?
A) the availability of a close substitute for the item B) the percentage of a consumers budget allocated to expenditures on the item C) the amount of time available to adjust to a change in the price of the item D) All of the above are correct.