If the United States is a "net borrower" from abroad
A) net foreign investment must be positive.
B) national saving is less than domestic investment.
C) the United States must be exporting more than it is importing.
D) net capital flows must be negative.
B
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Over time, a country's real GDP per capita typically
A) shrinks B) grows. C) increases and decreases randomly. D) remains stable.
In the long run a company that produces and sells candy bars incurs total costs of $1,200 when output is 2,400 candy bars and $1,400 when output is 2,900 candy bars. The candy bar company exhibits
a. diseconomies of scale because total cost is rising as output rises. b. diseconomies of scale because average total cost is rising as output rises. c. economies of scale because total cost is rising as output rises. d. economies of scale because average total cost is falling as output rises.
According to new growth theory, per capita growth is:
A. limited by learning by doing. B. limited by diminishing marginal productivity. C. unlimited if production is characterized by increasing returns to scale. D. unlimited if production is characterized by constant marginal productivity.
Suppose that the federal government suddenly declared that wheat was to be used as money. What is a possible outcome of that decision?
A. The value of the "wheat dollar" would be unstable depending on crop yields from year to year. B. Farmers would replace corn and soy crops with wheat. C. Wheat would function as money so long as people accept it in exchange for goods and services. D. All of these are possible outcomes.