Nations that borrow from abroad to support current investment will:
A. always be better off in the future.
B. always sacrifice future consumption.
C. be better off in the future if the investments are profitable.
D. sacrifice future consumption only if the investments are profitable.
Answer: C
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Which of the following statements is true?
a. A tariff is a physical limit on the quantity of a good allowed to enter a country. b. An embargo is a tax on an imported good. c. A quota is a law that bars trade with another country. d. When a nation exports more than it imports it is running a balance of trade surplus.
In which one of the following market models is X-inefficiency least likely to be present?
A. Pure competition. B. Oligopoly. C. Monopolistic competition. D. Pure monopoly.
When the government grants an inventor a patent
A) he has the exclusive right to make, sell or use his invention for 5 years. B) the protection of a current invention would increase spending on R&D. C) the patent holder has less incentive to invest in R&D because one successful invention removes the need to develop others. D) the patent holder is guaranteed a profit on his invention.
How does the market mechanism answer the WHAT, HOW, and FOR WHOM questions?
What will be an ideal response?