In economics, we assume rational decisions are made when individuals weigh:
A. the sunk costs versus the benefits of an action.
B. the sunk costs versus the opportunity costs of an action.
C. the opportunity costs versus the benefits of an action.
D. the opportunity and sunk costs versus the benefits of an action.
C. the opportunity costs versus the benefits of an action.
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Foreign direct investment declined worldwide during the recession of 2007-2009
The decline in foreign direct investment in developing countries can make it more difficult for these countries to break out of the vicious cycle of low economic growth and A) overpopulation. B) low saving and investment. C) low government spending. D) a low import/export ratio.
Under which of the following circumstances would private saving be positive in a closed economy?
A) Y = $6 trillion C = $2 trillion TR = $8 trillion G = $3 trillion public saving = $1 trillion B) Y = $10 trillion C = $5 trillion TR = $2 trillion G = $2 trillion public saving = $1 trillion C) Y = $8 trillion C = $2 trillion TR = $4 trillion G = $2 trillion public saving = $4 trillion D) Y = $9 trillion C = $5 trillion TR = $1 trillion G = $1 trillion public saving = $3 trillion
A game is:
A. a situation in which each member of a group makes at least one decision and cares both about his own choice and about others' choices. B. describes a situation in which strategy plays a role. C. provides the foundation for understanding competition in industries with only a few producers. D. All of these are correct.
Which of the following increases the effectiveness of monetary policy from a monetarist perspective?
A. Changing expectations. B. Unresponsive investment demands. C. The liquidity trap. D. The constant velocity of money.