If a U.S. citizen deposits $10,000 in a foreign bank, and the bank uses the $10,000 to buy assets in the U.S., then ________
A) the U.S. has experienced a net capital outflow
B) the U.S. has experienced an increase in net exports
C) the foreign economy has experienced a net capital outflow
D) the foreign economy has experienced an increase in net exports
E) none of the above
E
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Refer to Scenario 15-5. How much additional profit can the airline earn by charging each customer their willingness to pay relative to charging a flat price of $600 per ticket?
a. $15,000 b. $25,000 c. $40,000 d. $70,000
If taxes are reduced, will most people save more or less than before? Does national saving rise or fall? Explain
What will be an ideal response?
A monopoly whose monopoly power is based on its exclusive access to a resource is always threatened by the possibility of
a. technological change b. patents c. economies of scale in production d. new firms entering the industry e. its position as a natural monopoly
GDP expressed in constant, or unchanging, prices is called -
a. net national product b. real GDP c. price level d. nominal GDP