The investment when a firm runs part of its operation abroad or invests in another company abroad is called:
A. portfolio investment.
B. import investment.
C. export investment.
D. foreign direct investment.
D. foreign direct investment.
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One strategy that can be used to establish expensive procurement contracts is to start a program with relatively low initial costs. This strategy might be an unintended consequence of _____
a. military alliances with nations producing needed military goods b. unexpectedly high development costs associated with new technology c. the political process d. the incentives facing firms bidding for the expensive procurement contracts
Stagflation is defined as:
a. the simultaneous occurrence of high inflation and high unemployment. b. high inflation accompanied by falling interest rates. c. declining GDP accompanied by a stable price level. d. a persistent decline in the price level that is unresponsive to monetary and fiscal policies.
Marginal revenue is
a. the change in total revenue obtained by selling an additional unit of output b. average revenue per unit of output c. the change in total revenue per unit of cost d. total revenue divided by average revenue e. average revenue divided by marginal cost
Which of the following correctly describes the ceteris paribus assumption?
a. If we increase the price of a good, reduce consumer incomes, and lower the price of substitutes, and if quantity demanded is observed to fall, we know that the price increase caused that decline in quantity demanded. b. If the federal government increases government spending, and the Federal Reserve Bank lowers interest rates, we know that the increase in government spending caused unemployment to fall. c. If we decrease the price of a good and observe that there is an increase in the quantity demanded, holding all other factors that influence this relationship constant. d. If a company reduces its labor costs, negotiates lower materials costs from its vendors, and advertises, we know that the reduced labor costs are why profits are higher.