Developing countries do:
A. compete with one another for foreign investment, and this competition reduces the benefits from foreign investment.
B. not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs.
C. not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place.
D. compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.
Answer: A
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In a steady-state economy with no population growth, consumption per worker is 45, the saving rate is 25 percent, and the depreciation rate is 15 percent. The level of capital per worker is ________
A) 75 B) 36 C) 100 D) 27
The ratio of a change in consumption to a change in disposable income is the:
a. consumption function. b. propensity to consume. c. average propensity to consume. d. extra propensity to consume. e. marginal propensity to consume.
The CPI but not the GDP deflator takes into account
a. The prices of imports that consumers buy b. Investment goods bought by businesses c. Goods bought by the government d. None of the above
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy's opportunity cost of producing one car is ________ pounds of cheese.
A. 1/250 B. 20 C. 250 D. 1/20