Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same.
B. at any of the labeled points, as all of the points represent an efficient allocation of resources.
C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced.
D. indeterminate from this information, as we don't have any information about the society's desires.
Answer: D
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The purchasing of at least twenty percent of a firm in another country or starting up a new enterprise in a foreign country is referred to as foreign direct investment (FDI).
Select whether the statement is true or false. A. True B. False
Jelena lives in a poor country with very little capital. In contrast, Alejandro’s country is rich and has a lot of capital. The law of diminishing marginal returns to capital means that, to boost economic growth by 1 percentage point in both countries, ______.
a. Jelena’s country will need to add many more units of capital than Alejandro’s will need to b. both countries will need to add the same amount of capital c. Alejandro’s country will need to add many more units of capital than Jelena’s will need to d. Alejandro’s country will need to invest a significant amount of capital in Jelena’s country
Aluminum Aces dumps wastewater into a creek they have owned for decades. The new neighbor, Ms. Franklin, has tried to grow bamboo along the creek where it enters her property, but the wastewater kills about $1,000 worth of her bamboo each year. She offers Aluminum Aces $600 per year to add a new filter, which costs $400, to their system so wastewater will no longer kill her bamboo. Which of the following is true of this situation and necessary for it to fit the Coase theorem?
a. Neither party is worse off than before. b. Property rights are not defined. c. A positive externality is internalized. d. Transaction costs are high.
Which of the following is NOT true with fixed exchange rates and perfect capital mobility?
A. Sterilization is impossible. B. Monetary policy is very powerful only in the short run. C. Monetary policy is not effective in either the long run or the short run. D. Fiscal policy is very powerful.