An economic benefit of capital outflows is that they
A. reduce domestic saving.
B. increase domestic investment.
C. reduce domestic unemployment.
D. create future income payment inflows.
Answer: D
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Everything else held constant, a decrease in net taxes ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
Columbia produces coffee with less labor and land than any other country; it therefore necessarily has a. an absolute advantage in coffee production
b. a comparative advantage in coffee production. c. both a comparative and absolute advantage in coffee production. d. an absolute advantage and comparative disadvantage in coffee production.
A census area that has a poverty rate of 40 percent or greater and is associated with increased crime, poorer health outcomes, failing schools, and decreased employment opportunities is known as:
a) decentralized poverty. b) an urban area. c) a rural area. d) concentrated poverty.
Suppose a monopolist's costs and revenues are as follows: ATC = $50; MC = $45; MR = $35; P = $55. The firm should
A) increase output and decrease price. B) decrease output and increase price. C) not change output or price. D) shut down.