A country has a trade deficit. Its
a. net capital outflow must be positive, and saving is larger than investment.
b. net capital outflow must be positive and saving is smaller than investment.
c. net capital outflow must be negative and saving is larger than investment.
d. net capital outflow must be negative and saving is smaller than investment.
d
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When firms spend more on additional holdings of raw materials, parts and finished goods ________
A) they are increasing their fixed investment B) they are increasing their inventory investment C) they are increasing their private consumption D) all of the above E) none of the above
It costs a firm $80 per unit to produce product A and $50 per unit to produce B individually. If the firm can produce both products together at $120 per unit of product A and B, this exhibits signs of
a. Economies of scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
The majority of new jobs created in the service sector of the U.S. economy have been in the information sector
a. True b. False Indicate whether the statement is true or false
An increase in consumer confidence will tend to cause which of the following to occur?
A) a rightward shift in the IS curve B) a leftward shift in the IS curve C) an upward shift in the LM curve D) a downward shift in the LM curve